New tariffs are in play that could raise the cost of HVAC equipment, components, and raw materials. While a 90-day pause has delayed most of the planned increases, some are already active, and HVAC businesses are starting to feel the effects.
If you run an HVAC business, this matters. You’ll want to understand what’s already changed, how it affects your margins, and what steps to take now to protect your bottom line.
The Short Version: What Changed
- A 10% tariff on nearly all imported goods took effect on April 5, 2025
- A 125% tariff on Chinese imports is also now in effect
- A 90-day pause has delayed most other planned increases—for now
Goods from Canada and Mexico are mostly exempt under USMCA rules. Products already under 25% steel and aluminum tariffs remain unchanged. Copper goods are temporarily exempt but could still be affected.
These tariffs apply to raw materials, parts, and finished goods. That includes compressors, motors, control boards, and other common HVAC components—especially those with parts sourced from China.
How Tariffs Affect the HVAC Industry
Manufacturers
Most HVAC systems rely on imported components—even those assembled in the U.S. Parts like blower motors, control boards, and refrigerant components are often sourced globally. With the 10% tariff and the steep increase on Chinese goods, manufacturers are adjusting pricing. Many released price increases in early April, and more may follow.
Distributors
Distributors are already seeing higher landed costs on equipment and parts. Some are passing those increases through; others are renegotiating with manufacturers. Even domestic suppliers are adjusting to upstream pricing shifts. Expect ongoing pricing reviews and updates across the board.
Contractors
Contractors are feeling the impact through:
- Higher equipment and part costs
- Shorter lead times on quotes
- More uncertainty in job pricing and timelines
If your business relies on long quote windows or fixed-rate bids, now’s the time to revisit those processes.
A Familiar Pattern Is Repeating
Some large distributors and dealers are already stockpiling inventory in anticipation of more price increases after the 90-day pause ends. That behavior can tighten availability for smaller contractors who don’t have the same buying power or warehouse space.
If you’re not prepared, you could see limited stock, longer lead times, and fewer options—especially for high-turnover items.
Operational Steps to Take Now
To stay ahead of pricing changes and inventory pressure, here are steps every HVAC contractor should consider:
- Call customers with older systems (10+ years)
These are strong candidates for replacement. Now is a good time to talk about upgrades before additional pricing changes hit. - Follow up on past quotes and open jobs
Revisit pending estimates or deferred repairs. Customers may not know pricing has already changed. - Update your marketing and website messaging
Check that all offers, financing info, and availability disclaimers are current. - Shorten quote validity
Move to a 7–15 day window and include clear language about supplier-driven price adjustments. - Talk to your vendors weekly
Check in on pricing, shipping timelines, and product availability. - Stock critical items if you can
Focus on fast-moving systems, replacement parts, and accessories you use regularly. - Train your team
Your sales and service staff should be able to explain what’s happening clearly and confidently. - Stay focused on service
Avoid political commentary in customer-facing content. Keep your message centered on professionalism and value.
What Homeowners Will Notice
Not all homeowners will be aware of the new tariffs. But they’ll notice the effects:
- Quotes may be higher than expected
- Installation timelines may shift due to backorders
- Equipment options may be limited or require substitutions
Clear and honest communication can make a big difference in how these changes are received. You don’t need to explain trade policy. Keep it simple and direct:
“Due to new federal tariffs, the cost of HVAC systems and components has gone up. These changes are coming from our suppliers and manufacturers. We’re doing everything we can to keep pricing fair and consistent.”
Then guide them with solutions:
Offer Financing
Monthly payments can make the cost more manageable, especially for unexpected replacements.
Emphasize Long-Term Value
Even at a higher price point, new systems improve energy efficiency, reduce the risk of breakdowns, and lower overall operating costs.
Be Clear About Timing
Let customers know more increases may be coming. Acting now could help avoid higher prices later.
Present Tiered Options
Offer good-better-best packages to help customers choose what works for their budget and comfort needs.
What Happens Next?
The 90-day pause has delayed most additional tariffs, but it’s a temporary window. No one knows yet if the pause will be extended or if new tariffs will take effect once it ends.
The 10% global tariff and the 125% China-specific tariff are already active and shaping costs throughout the supply chain.
More categories could be added. Exemptions could change. The situation is still evolving and HVAC businesses should plan accordingly.
Final Thoughts
This isn’t about reacting to a headline. It’s about being ready for what’s already happening and what’s coming next. There’s still time to adapt, but that window won’t stay open for long.
If your business needs support adjusting strategies to stay visible online as conditions shift, CI Web Group. We work with HVAC companies every day to stay ahead of market changes and keep their business future-focused. Schedule a time to chat today!
Guest Author
CI Web Group
At CI Web Group, Inc., our mission is to revolutionize the home services industry through innovative digital marketing and web design solutions. We are dedicated to helping home service businesses establish a powerful online presence, attract their target audience, and drive sustainable growth.
Our primary objective is to deliver exceptional results for our clients by leveraging cutting-edge technology, strategic thinking, and industry expertise. We aim to be the leading digital marketing and web design agency for the home services sector, known for our unwavering commitment to customer success and innovation.
