New tariffs on imports will likely raise the cost of HVAC equipment, whether it’s made in the U.S. or outside the country.
President Donald Trump on Wednesday announced a slew of what he called reciprocal tariffs, saying he was doing so in response to tariffs that other countries levy on U.S. goods. The new policy, which takes effect Thursday, includes a 34% tariff on goods from China, 20% on goods from the European Union, 24%, and higher for some items, on Japanese products, 32% on products from Taiwan, and 46% on Vietnamese imports.
Trump, speaking in the Rose Garden to cabinet members, other federal officials, blue-collar workers, and reporters, said the tariffs are a way of prompting manufacturers to invest in the U.S. and build products here.
“Jobs and factories will come roaring back into our country, and you see it happening already,” Trump said. “We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers, and ultimately, more production at home will mean stronger competition and lower prices for consumers. This will be, indeed, the golden age of America.”
China and Taiwan are major importers of electronics, and most of the world’s computer chips come from Taiwan, meaning that even HVAC manufacturers that assemble HVAC units in the U.S. will pay more for some components and, more than likely, pass those costs on to customers. HVAC units made in other countries will be subject to tariffs as well.
“With President Trump’s announcement of tariffs on eight of the top 10 exporters of HVACR and water-heating equipment to the United States going as high as 46%, we expect to see price increases passed on to consumers,” said Alex Ayers, vice president of government affairs at Heating, Air conditioning & Refrigeration Distributors International (HARDI).
Not mentioned by Trump were tariffs on Canada and Mexico.
“Unfortunately, we don’t know how tariffs on Canada and Mexico will play out, as the White House said they are continuing to honor the zero-tariff rate under USMCA for now,” said Ayers, referring to the trade agreement between the U.S., Canada, and Mexico and goods covered under that agreement.
But and Canada and Mexico, along with the rest of the world, were hit with tariffs of 25% on steel and aluminum last month. Canada is the biggest importer of those metals, followed by the European Union, according to the Visual Capitalist.