Answers to the most common questions from ACCA members navigating the current tariff environment.
What are tariffs and how do they affect HVACR equipment costs?+
Tariffs are taxes imposed by governments on imported goods, paid at the U.S. point of entry by the importer. Steel, aluminum, and copper are the materials most directly affecting HVACR equipment costs — they're used in compressors, coils, refrigerant lines, cabinets, and electrical components. Even systems assembled in the United States contain parts and raw materials subject to tariffs. Those added costs typically flow through the supply chain to distributors, members, and ultimately to customers.
Why did ACCA flag the latest Section 232 changes as especially significant?+
The most consequential recent change was the elimination of the U.S.-origin metal exemption. Previously, steel and aluminum sourced from American producers were exempt from Section 232 tariffs. That exemption has now been removed. Mexico is the largest single exporter of HVACR products to the U.S., and according to HARDI import data, roughly 84% of the metal content in those products was previously U.S.-origin and exempt. Now, that same equipment faces a flat 25% tariff on its entire value — a dramatic increase from an effective rate of around 8%. ACCA has sent a letter to the administration urging an exemption for HVACR equipment or at least a 90-day delay to allow supply chains to adapt.
Which HVACR components are most exposed to tariff cost increases?+
The most exposed components include: compressors (often sourced from China or Mexico), copper refrigerant lines and coils, aluminum and steel equipment cabinets and heat exchangers, control boards and motors (frequently imported from China and subject to both Section 232 and Section 301 duties), and copper wiring and electrical components. Even for equipment assembled domestically, these components carry tariff-embedded costs.
Can buying from domestic manufacturers help avoid these tariff costs?+
Partly — but not fully. Domestically assembled HVACR equipment still relies heavily on imported components and raw materials subject to tariffs. Additionally, as tariffs redirect buyers toward domestic supply, demand for domestic materials increases and domestic prices rise as well. Members should track both import and domestic market conditions and stay in close contact with distributors for pricing visibility.
How do Section 232 and Section 301 tariffs interact on Chinese imports?+
These tariff programs operate independently and can apply simultaneously. For HVACR components sourced from China — such as compressors, motors, and copper materials — Section 232 metal duties apply first. Section 301 duties on Chinese imports then apply in addition, bringing the combined effective rate to around 30% for most products. A much higher 125% rate was previously set but is currently paused while the U.S. and China are actively negotiating a trade deal. Members should monitor CBP guidance closely as this situation may change.
What's the Supreme Court's role in the current tariff picture?+
In late February 2026, the Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose broad, across-the-board tariffs. This removed the IEEPA-based baseline duties on most imported goods. In response, President Trump invoked Section 122 of the Trade Act of 1974, implementing a new 10% temporary import surcharge (150 days, expiring around July 2026). Critically, Section 232 tariffs on steel, aluminum, and copper — the main source of cost pressure for HVACR — were not affected by the Supreme Court ruling and remain fully in effect.
How should I talk to customers about why prices are increasing?+
Be proactive and transparent — don't wait for customers to notice. Explain that most HVACR equipment uses imported components like compressors, control boards, motors, and copper materials, and that even systems assembled in the U.S. contain parts subject to tariffs. Acknowledge that price increases can be difficult to digest, especially with inflation in the news. Move to solutions: offer flexible payment options through the Maximus platform, highlight available energy-efficiency tax credits, and give customers clear language on why quote pricing has a limited validity window. See the pricing discussion guides in the Resources section for specific talking points.
Should I adjust how long my quotes are valid?+
Yes. The tariff environment has been volatile throughout 2025 and into 2026, with rates changing, pausing, and resuming. Distributors can't guarantee pricing will hold, which means members can't either. Consider reducing quote validity from the traditional 30-60 days and including clear language that pricing is subject to supplier changes beyond your control. For longer projects, add tariff adjustment clauses to protect against absorbing unexpected cost increases on jobs with extended timelines.
How can financing help customers navigate higher prices?+
Offering financing is one of the most effective tools for helping customers say yes when prices are elevated. About 25% of homeowners have $500 or less set aside for emergency home repairs, yet HVACR repairs and replacements can cost thousands. ACCA's Maximus platform, powered by Finturf, connects homeowners to a network of more than 20 lenders through a single application — right at the kitchen table. Members who present financing early in every appointment see higher close rates and larger average job sizes. Visit the Resources section below to learn more.
What is ACCA doing about tariff impacts on the industry?+
ACCA has been actively monitoring Section 232 tariff changes since they were first announced. ACCA sent a letter to the administration urging an exemption for HVACR equipment or a 90-day delay to allow supply chains to adapt. ACCA's Government Relations team is meeting with key decision-makers and is eager to provide member feedback directly to policymakers. Members can take action through ACCA's ACTion Alert system. For questions or to share how you're handling tariff conversations with customers, contact ACCA's Government Relations team at govt@acca.org.