Trump delays tariffs on HVAC imports from Canada, Mexico

Just days after 25 percent tariffs on imports from Canada and Mexico went into effect, President Trump on Thursday partially reversed course, announcing that tariffs on certain imports from both countries will be delayed until April 2. 

Why it matters: “More than two-thirds of HVAC products are made or use components imported from Canada, China, or Mexico,” according to HARDI.  

What’s happening: The delay specifically impacts products covered by the ‘U.S.-Mexico-Canada Agreement’ — a trade agreement negotiated during Trump’s first term — which includes HVAC products, sparing the industry for now.  

• “[Canada and Mexico] have been working much harder lately… on people coming in and drugs,” Trump said, explaining his decision. “We’ve made tremendous progress on both.” 

The big picture: Canada is one of the U.S.’s largest suppliers of key HVAC materials steel and aluminum, exporting twice the amount of aluminum in 2024 than the next nine countries combined. 

• $12 billion worth of finished HVAC products sold in the U.S. last year originated in Canada and Mexico, per HARDI. 
• Several major manufacturers, including Carrier, Daikin, Lennox, and Trane, also have manufacturing operations in Mexico. 

Of note: Despite the back-and-forth, manufacturers remain confident in their ability to manage tariffs, with Trane CEO Dave Regnery recently telling analysts, “We’ve dealt with tariffs in the past… [If] we see something change, we’re going to act very quickly.”

Looking ahead: While the delay currently stands at one month, the fluid nature of the situation suggests that nothing is set in stone.

• “Hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table [by April 2],” Commerce Secretary Howard Lutnick told CNBC on Thursday. 
• “But if they haven’t, this will stay on.”