COLUMBUS, Ohio — Four major HVACR industry associations are urging the U.S. Trade Representative (USTR) to preserve the benefits of the United States-Mexico-Canada Agreement (USMCA) as negotiations with Mexico continue.

The Air Conditioning Contractors of America (ACCA), Air-Conditioning, Heating, & Refrigeration Institute (AHRI), Heating, Air-conditioning & Refrigeration Distributors International (HARDI), and Plumbing-Heating-Cooling Contractors—National Association (PHCC) sent a joint letter to U.S. Trade Representative Jamieson Greer ahead of the fourth bilateral negotiating round scheduled for Washington this month.

The groups represent manufacturers, wholesale distributors, and contractors involved in producing, distributing, installing, servicing, maintaining, and replacing HVACR and water heating equipment. According to the letter, 1.9 million workers across the HVACR industry benefit from the USMCA.

The associations said the agreement has supported North American manufacturing by providing a predictable framework for companies operating across integrated supply chains.

“Between 2018 and 2025, the value of HVACR products supplied to the U.S. market by North American manufacturers, including manufacturing in the United States, grew at more than twice the rate of HVACR products imported from outside North America,” the organizations wrote.

HVACR manufacturing often involves raw materials, components, subassemblies, and finished products crossing borders during production. The groups said the USMCA has helped companies make long-term investments in North American production and establish regional supplier relationships.

The coalition is asking USTR to prioritize three areas as negotiations continue.

First, the groups want broad Section 232 relief for HVACR equipment, parts, and components that qualify as originating under the USMCA. The associations said HVACR products are exposed to tariffs on steel, aluminum, copper, and derivative products. Those materials are used in compressors, coils, cabinets, refrigerant lines, heat exchangers, motors, and electrical components.

The associations acknowledged the administration’s June 1, 2026, proclamation temporarily extending reduced Section 232 treatment to certain residential HVAC systems and components. However, they are seeking broader relief for USMCA-originating HVACR goods.

“Applying substantial Section 232 tariffs to USMCA originating HVACR goods can diminish the value of preferential treatment under the agreement and penalize companies that have structured their supply chains around North American production,” the groups wrote.

Second, the coalition wants USTR to preserve workable rules of origin for HVACR products and components. The associations support requirements that ensure USMCA benefits go to producers and workers in the United States, Mexico, and Canada. They also said the rules must remain predictable and commercially workable for complex manufactured products.

The groups urged USTR to avoid changes that could create unnecessary tracing requirements or make it difficult for companies to qualify for USMCA preferences. They also said the rules should recognize that some North American manufacturing depends on specialized inputs that may not be available within the region at sufficient scale or on commercially viable terms.

Third, the associations are asking the administration to maintain USMCA exemptions in future tariff actions.

The letter points to a 2026 Section 301 action addressing forced labor as an example, noting that additional duties did not apply to products from Canada or Mexico entering under the USMCA.

“Exempting qualifying goods from additional tariffs preserves the value of the commitments negotiated under the USMCA and reinforces incentives for continued investment in North American production,” the groups wrote.

The associations said trade disruptions could affect more than the HVACR industry because heating, cooling, ventilation, refrigeration, and water heating systems serve homes, schools, hospitals, workplaces, food and medicine storage facilities, and industrial and commercial operations.

“The agreement has helped establish the certainty manufacturers need to invest in regional production, distributors to maintain reliable inventories, and contractors to obtain affordable equipment and parts needed to serve homes and businesses throughout the United States,” the groups wrote.

The coalition concluded by urging USTR to pursue broad Section 232 relief for USMCA-originating HVACR goods, preserve commercially workable rules of origin, and maintain exemptions for qualifying products in future tariff actions.

“Maintaining a strong and predictable USMCA will support continued investment in HVACR manufacturing across North America, support U.S. workers and businesses throughout the supply chain, and ensure that essential heating, cooling, ventilation, and refrigeration equipment remains available when consumers and businesses need it,” the associations wrote.

The groups said they look forward to working with USTR as negotiations with Mexico and the USMCA Joint Review process continue.