If you plan on replacing your HVAC system, you may notice an increase in costs soon. New tariffs on steel and aluminum imports are set to impact the prices of heating and cooling systems, making it more expensive to keep your home comfortable.
Why Are HVAC Prices Increasing?
The U.S. government has placed a 25% tariff on steel and aluminum imports from key trading partners such as Canada, Mexico, China, and the European Union (AP News). HVAC systems rely on steel and aluminum for key components like air conditioner coils, ductwork, and unit structures; because of this, manufacturers will start to face higher material costs, which will eventually be passed down to the customer.
How Will This Impact Your Purchase?
In 2023, the U.S. imported around $9.42 billion worth of HVAC parts, with nearly 70% coming from the tariff-affected countries. (World Bank).
The increased costs could result in:
- Higher Prices for HVAC Units: Whether you’re replacing an old system or installing a new one, expect potential price hikes.
- Longer Wait Times: Supply chain disruptions may cause delays in getting HVAC units and parts.
- Fewer Discount Opportunities: Special offers and promotions on HVAC systems may become less frequent as manufacturers and suppliers adjust to higher costs.
What Can You Do to Save Money?
If you are in the market for a new HVAC system, here are a few things to help you navigate these changes:
- Act Now: If you have been considering replacing your HVAC unit, buying before the prices rise could save you money.
- Consider Financing Options: Many HVAC companies offer financing plans to spread out the cost of your system over time.
- Look for Energy Efficiency Rebates: Upgrading to an energy-efficient system saves you money on your monthly utility bill and could make you eligible for local and federal rebates and tax credits to help offset the price increase.
Stay Informed
While tariffs are expected to raise HVAC prices over time, being proactive can help you avoid unnecessary expenses. Keep an eye on industry trends and plan to make the best decision for your home.
Sources:
AP News. Trump’s 25% tariffs on all steel and aluminum imports go into effect ACHR News. How Tariffs Will Impact HVAC Pricing World Bank. Trade Data on U.S. HVAC Imports, 2023 Contracting Business. Trump Tariffs Take Effect: What Do They Mean for the HVACR Industry? Origin Investments. Construction Market Braces for Trump Tariff Impact