Tariff changes are impacting HVACR costs again…here’s how you can make your voice heard
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Update: June 2, 2026
Section 232 tariffs on HVAC equipment cut to 15%
On June 1, a proclamation was signed modifying certain Section 232 national security tariffs on imported steel, aluminum, and copper-containing products. Of particular interest to the HVACR industry, the Administration reduced the tariff rate on certain residential heating, air conditioning, and ventilation equipment from 25% to 15%.
The reduced tariff rate will apply beginning June 8, 2026, and is scheduled to remain in effect through December 31, 2027. While additional implementation details are expected, the change could help relieve cost pressures on imported HVAC equipment and components that utilize steel and aluminum inputs.
The proclamation also creates an incentive for manufacturers to increase domestic sourcing. Foreign-produced equipment may qualify for an even lower 10% tariff rate if at least 85% of the steel or aluminum content by weight is melted and poured or smelted and cast in the United States. This provision may encourage greater use of domestically produced metals within HVAC equipment supply chains.
You may recall that ACCA submitted comments to the Administration in April outlining industry concerns regarding the potential impact of tariffs on equipment availability, affordability, and contractor operations. We also want to thank the many ACCA members who participated in our tariff advocacy alert and shared their perspectives with federal policymakers. Member engagement helps ensure that decision-makers in Washington understand how trade policies can affect HVACR contractors, their employees, and the customers they serve. Your participation amplifies the voice of contractors and helps ACCA advocate for practical solutions for the industry.
ACCA will continue monitoring the implementation of the proclamation and any guidance issued by the Administration. Additional information will be provided as details become available. Visit ACCA’s Tariff Resource Center for real-time HVAC tariff updates.
Make your voice heard
While ACCA members did not select tariffs and trade as a top contractor policy priority at our 2025 Town Hall, we believe the scale of this change demands action. Contractors can lend their support as well by participating in our ACCA ACTion Alert:
TAKE ACTION
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ACCA has been actively monitoring the recent changes to Section 232 tariffs on steel, aluminum, and copper since they were first announced in early April. On April 3, we shared a statement on our social media reminding contractors to focus on what they can control during an era of shifting policies: job costing, pricing structures, and open communication with customers.
Expected impact on HVACR equipment pricing
As additional details have become available, ACCA has become very concerned about the latest changes to Section 232 tariffs on steel, aluminum, and copper — and one specific change in particular will significantly drive up equipment costs for contractors and their customers, disrupting the industry once again as contractors head into their busy season.
The most consequential update involves how U.S.-origin metals are now treated under the tariff rules. Previously, steel and aluminum sourced from American producers were exempt from Section 232 tariffs — a deliberate incentive to use domestically produced metals. That exemption has now been eliminated. This matters enormously for HVACR equipment manufactured in Mexico, which is the largest single exporter of HVACR products to the United States.
Here’s what the numbers look like in practice: According to HARDI, the association for HVAC distributors, import data from late 2025 shows that HVACR products coming from Mexico faced an effective tariff rate of roughly 8%. That relatively low rate existed because approximately 84% of the metal content in those products was of U.S. origin — and that U.S.-origin metal was previously exempt. Under the new rules, that same product no longer qualifies for preferential treatment. Instead of paying a modest tariff only on the foreign metal content, it now faces a flat 25% tariff on the entire value of the product. The effective tariff rate on Mexican-made HVACR equipment will therefore increase dramatically — approaching that full 25%. It is likely that the cost will be passed through the supply chain to distributors and contractors; ultimately contractors would likely need to pass on those increased costs to homeowners and businesses.
Make your voice heard
While ACCA members did not select tariffs and trade as a top contractor policy priority at our 2025 Town Hall, we believe the scale of this change demands action.
ACCA sent a letter to the administration urging an exemption for HVACR equipment or at least a 90-day delay allowing manufacturers to adapt their supply chains.
Contractors can lend their support as well by participating in our ACCA ACTion Alert:
TAKE ACTION
ACCA’s Government Relations team is already meeting with key decision-makers on these issues and we’re always eager to provide personal assistance to advocates like you. We can help schedule and accompany you on meetings in Washington, D.C. – at the May 5-6 PHCC Legislative Conference or any time of year (ACCA members receive discounted registration for the PHCC Legislative Conference as a part of ACCA and PHCC’s recently announced strategic collaboration).
You can also have an even greater impact with a meeting or shop tour back home in the district. Email govt@acca.org for personal guidance.
Preparing your business
For contractors, these tariffs are just the latest reason to prepare for rising equipment costs. Now is the time for contractors to revisit job costing, add material and equipment price escalation clauses to project contracts, and have proactive conversations with your customers before they see the impact at the point of sale. Staying close to your distributor relationships for pricing visibility will also be critical in the weeks ahead.
If you haven’t already, this is also a critical time to ensure that you have affordable financing options in place to help customers absorb these rising costs. ACCA’s newest Platinum Partner, Finturf, offers consumer financing options via ACCA’s Maximus platform with over 20 lenders. Join ACCA and Finturf for a free webinar on April 30 on how contractors can use financing as a proactive sales tool to help normalize monthly payments for customers.
According to the 2025 Contractor of the Future Study ACCA conducted in partnership with Farmington Consulting Group, 68% of contractors offer financing; however, only 35% of contractors indicated they always offer financing on every job. Close rates increase from 38% to 49% when contractors offer financing on every job. Importantly, leading with a monthly payment at the kitchen table increases the percent of new/replacement system sales from 21% to 42%.
Next steps
ACCA will continue to engage with policymakers and our industry partners to explain the unintended consequences of removing the U.S.-origin metals exemption. With timely information, useful templates, and financing tools, we’ll also provide ACCA members with a competitive advantage as equipment costs continue to rise.
Posted In: Action Alerts, Government, Top Priorities
