Will Increased Tariffs Mean Rising Costs For HVAC Consumers?

If it doesn’t feel like your dollar is going as far as it should, the situation recently became more precarious. After a 30-day pause in February, President Trump recently reinstated 25% tariffs on Mexican and Canadian imports while increasing Chinese tariffs to 20%.

But what does this mean for ordinary Americans with HVAC needs? We'll give you an apolitical breakdown of how what’s happening with tariffs could affect your wallet and comfort.

How Tariffs Impact HVAC Consumers

With approximately 70% of all HVAC imports coming from tariffed countries, here’s what we expect:

• Mexican, Canadian, and Chinese manufacturers will either have to absorb tariff costs or pass the buck. History suggests consumers will most likely foot the bill.
• Economists also predict tariffs will alter consumers’ purchasing habits. Most likely, they’ll choose repairs over replacement. And when it’s time to replace, consumers may choose basic over premium HVAC systems.

How Regulatory Changes Impact Prices

At face value, you might assume purchasing American-made HVAC systems would protect you from price hikes caused by tariffs. Unfortunately, it’s not that simple. Here’s why:

• Most American manufacturers rely on imported raw goods like copper, steel, and aluminum (all key materials used to manufacture HVAC systems). Unfortunately, when manufacturers have higher material costs, prices go up for consumers.
• The HVAC industry relies on a global supply chain. Because American manufacturers rely on components sourced from countries with tariffs, price hikes get passed down all along the supply chain. 
• When prices rise across the board, even manufacturers unaffected by tariffs often hike prices. Why? Because there’s less pressure to compete.

The Bottom Line: What HVAC Consumers Can Do

With tariffs driving up prices, consumers need to be strategic about their heating and cooling investments. The good news is you have options.

If Your System Is Still Running Strong

If your system is less than 15 years old and does not have frequent repair issues, this is the time to get serious about your maintenance routine. The more care you give your system, the longer it will last. Replace your filters regularly and consider purchasing a maintenance plan with Air Control.

Our plans start at $14.59/month. In addition to two tune-ups, including an 18-point system check, you also receive 10% off all repairs, parts, and labor. That $170 you'll spend for annual maintenance coverage is negligible—especially when you consider the average cost of a new HVAC system.

If Your System Needs Frequent Repairs

Whether you’re fed up with a finicky HVAC system or your system is approaching the 15 to 25-year mark, now is the time to make your move. By purchasing now, you can avoid price hikes that will come once manufacturers adjust to the new tariffs.

And don’t forget, we’ve teamed up with multiple third-party lenders that ensure you enjoy the benefits of a new HVAC system without breaking the bank.

You should also know that the federal government offers tax credits for HVAC systems—incentives for energy-efficient upgrades that could help offset costs. These credits, including the 25C Energy Efficient Home Improvement Tax Credit introduced as part of the 2022 Inflation Reduction Act, remain in effect.

Uncertain Markets Demand Smarter HVAC Decisions

If you've let your maintenance schedule slip, give us a call. We'll address minor issues before they become costly repairs. And if you're in the market for a system upgrade, we'll help you find a cost-efficient system that fits your budget and needs before tariffs drive prices even higher. Contact us today!