President Donald Trump said Tuesday morning that he would double impending tariffs on Canadian steel and aluminum, but by late Tuesday afternoon the 50% tariffs on the largest importer to the U.S. of those metals had been called off.
Still, 25% tariffs on steel and aluminum from Canada and all other countries are set to take effect Wednesday, and the price of HVAC equipment sold in the U.S. is almost certain to jump as a result.
Representatives of trade associations involved in HVACR said they’re evaluating the tariff situation and are ready to help their members. Some warned that tariffs will hurt member businesses.
“Steel and aluminum tariffs are doubly damaging to construction,” Ken Simonson, chief economist at Associated General Contractors of America, wrote in an email. “Contractors will be hit with higher costs on their purchases, while metals-using businesses and exporters will lose markets and cut back on investments.”
In a Tuesday morning social media post, Trump said he had ordered Department of Commerce Secretary Howard Lutnick to double the tariffs on Canadian aluminum and steel in response to the 25% surcharge that the province of Ontario imposed on electricity supplied to three U.S. states. Ontario Premier Doug Ford had said the electricity surcharge was a response to the Trump administration’s tariff policy, but media reports Tuesday afternoon indicated Ontario was suspending the surcharge.
Hours later, Trump administration spokesmen said the president had reversed himself on doubling the metals tariffs for Canada, according to media reports.
Several HVACR industry associations had reacted to the earlier news of the 50% tariffs, and to the metals tariffs in general.
Like Simonson, Sean Robertson, vice president of membership, advocacy, and events at ACCA, warned of the effects of higher prices for metal goods.
“Increased costs on materials, including HVACR equipment and components, could worsen existing shortages and exacerbate ongoing logistical challenges, especially for newer systems. ACCA will always advocate for solutions that support affordability, supply chain stability, and contractor access to the equipment and parts they need to serve their customers,” Robertson said. “We urge the administration to consider the potential negative impacts on our industry and to work toward solutions that support both American businesses and workers.”
At Heating, Air-conditioning & Refrigeration Distributors International (HARDI), CEO Talbot Gee said the organization will help member distributors navigate tariffs, and will lobby against them if necessary.
“HARDI is focused on aiding our members through this environment in which tariffs will continue to impact pricing, and in some instances, product availability,” Gee wrote in an email. “In those instances in which tariffs may impede the channel’s ability to provide essential services, HARDI will pull every available lever to work to influence tariff policy.”
Francis Dietz, vice president of public affairs at AHRI, said the organization is evaluating the ever-changing tariff situation. “We currently are in the process of surveying our membership to determine the potential effects and the association’s path forward,” Dietz said.
Dan Callies, president of Plumbing-Heating-Cooling Contractors—National Association (PHCC), also said his organization is monitoring the situation. Callies said that while financial markets have reacted to the potential economic fallout from tariffs, that hasn’t yet been the case for contractors.
“If there is a prompt resolution to the underlying policy matters that initiated the tariffs, the market impact will be short-lived,” Callies said in an email. “On the other hand, should there be protracted negotiations between trading partners while tariffs remain beyond the short term, it is possible there may be a deeper impact on contractors and their customers. PHCC leadership is in regular contact with our contractor members and manufacturing and wholesaler counterparts to ensure we are exchanging the latest market intelligence.”