New tariffs set to impact the HVAC industry: What to know

President Trump on Wednesday announced a new slate of tariffs on countries across the world, several of which will ripple into the HVAC business. 

The big picture: The moves are part of Trump’s aim to incentivize U.S. manufacturing and usher in what he’s said will be “the golden age of America.” 

A breakdown of what was announced, affecting the industry:

• A 10 percent tariff on all imports will take effect Saturday, April 5. 
• China, which exported to the U.S. $6 billion of HVAC and water heating products last year, received a 34 percent tariff, following an existing 20 percent imposed earlier this year, bringing its total to 54 percent. 
• Thailand and South Korea, the fourth and fifth largest exporters of HVAC industry products, shipping nearly $3 billion worth to the U.S. last year, face a 36 and 25 percent tariff, respectively. 
• These country-specific tariffs will begin next week, on April 9.
• A 25 percent tariff on steel and aluminum imports from all countries will also remain in place. 

What they’re saying: “We expect to see price increases passed on to consumers,” HARDI’s Alex Ayers told ACHR News in a statement, adding that the announcement affects eight of the top 10 exporters of HVAC and water heating products to the U.S., including those mentioned above. 

The good news: An exemption for certain goods from Canada and Mexico, including HVAC products, will remain in place for the time being. These countries made up over 50 percent of the industry’s imports last year. 

• Though recent reports suggest copper tariffs could be coming within the next several weeks, they were left out of yesterday’s announcement. 

What to watch: While the measures have sent shockwaves across the globe, the president said he may “decrease or limit in scope the duties imposed under this order” if countries adjust their tariffs on the U.S. in response.