New Tariffs Could Increase HVAC Equipment and Components Costs

New tariffs from the Trump administration could push up prices on heating and cooling equipment, though the effect on your wallet isn't clear yet. The tariffs, which took effect July 24, place a 10% duty on goods from countries that have adopted rules against forced-labor practices in their supply chains, including Canada, Mexico, and the U.K. Countries that haven't done so, including China, the European Union, and Japan, face a 12.5% duty. These tariffs were issued under a different legal authority (called Section 301) after the Supreme Court ruled in February that the president couldn't use his earlier approach to impose a broad 10% tariff on imports.

The tariffs don't target HVAC equipment directly, but China is a major source of parts like compressors, motors, control boards, and copper components used in heating and cooling systems, so the industry could still feel the impact. That said, an industry analyst noted that most HVAC equipment and components fall under separate tariff rules (Section 232, covering steel, aluminum, and copper) rather than these new ones, so a large share of imports may not be affected by this particular change. Goods already covered under those separate tariffs are exempt from the new duties.

It's still unclear whether these tariffs will overlap with another set of tariffs on Canadian goods set to begin August 19. Overall, how much any of this raises the price of a furnace, air conditioner, or heat pump will depend on where each manufacturer sources its parts, which varies widely across brands.