Cohesion throughout the supply chain is integral to the growth of the HVACR industry and success of HARDI members. Tariffs cause price increases which may affect distributors’ ordering processes and apply downward pressure on margins. Distributors need to be able to compensate for price increases by our manufacturer partners, who may increase prices in order to compensate for new parameters set by tariff policy and for higher production or materials costs.

Steel & Aluminum Tariffs

In March 2018 new tariffs on imports of steel and aluminum from nearly all foreign sources was implemented. These new tariffs, 25 percent on steel and 10 percent on aluminum, have already had an impact on the cost of HVACR products. Currently Argentina, Australia, Brazil, and South Korean imports of steel and aluminum are exempt from the tariffs. We expect the finalized renegotiation of NAFTA to also exempt steel and aluminum from Canada and Mexico.

HVACR Products & Supply Tariffs

The most rounds of tariffs announced in June and July of 2018 include many specifically listed HVACR equipment and parts. For products listed on June 15, 25 percent tariffs were implemented on July 6 and August 23. For products listed on July 17, a 10 percent tariff will begin on September 24 before increasing to 25 percent in 2019. This will result in prices increases across the vast majority of HARDI member products.

On September 18, an additional round of tariffs was announced, affecting more than 25 additional HVACR products and parts. These are included in the updated tariffs list linked below.

The full list of tariffs and specified products can be found here:

More Info

For additional questions, reach out to Alex Ayers at aayers@hardinet.org or Palmer Schoening at pschoening@hardinet.org.