Trump extends global tariff pause: HVAC’s state of play

Dozens of countries’ tariff rates were set to snap back to higher levels on Wednesday, as a 90-day pause announced in April expired, but President Trump on Monday pushed the date to August 1. 

Catch up quick: On April 2, the president imposed tariffs on over 75 countries, but days later, paused them for 90 days, allowing time for countries to negotiate trade deals with the U.S. As of this week, two deals have been made. 

What’s happening: Along with extending the pause, the administration on Monday sent letters to 14 countries — including three of America’s top ten HVAC suppliers — outlining new rates if they fail to make a deal by August 1. The latest, as of Wednesday morning:

• Thailand. The fourth-largest exporter of HVAC industry products will face a 36 percent tariff rate, the same as announced in April. 
• Japan and South Korea. The fifth- and sixth-largest suppliers will both face a 25 percent tariff rate.
• Meanwhile, President Trump said Tuesday that the U.S. will impose a 50 percent tariff on copper imports, without specifying when it takes effect. 

What else we know: Despite the new rates on three HVAC-relevant countries, China and Mexico, the industry’s two largest suppliers, have so far this week been left out of the picture. 

• State of play: The tariff rate on Chinese imports currently sits at 55 percent, following a separate 90-day pause announced in May that expires in mid-August. 
• HVAC products from Mexico remain exempt from tariffs, with no word on whether that’ll change.  
• And a 50 percent tariff on steel and aluminum imports from all countries continues in effect. 

What to watch: While tariffs have been on-again, off-again since March, the president said Tuesday that he’s standing firm on August 1, and won’t extend the deadline again. 

• In the meantime, the administration plans to send letters to additional countries over the coming days, with all countries having until the new deadline to negotiate deals that could potentially result in lower rates.

Editor’s note: President Trump on July 31 signed an executive order extending the deadline to August 7.