There has been a lot of conversation lately around tariffs, metals, and rising product costs, and we know that kind of uncertainty can be frustrating when you are trying to run a business, quote jobs, and take care of customers.
The short version is this: recent tariff changes are expected to increase costs on some HVAC products, especially products with a lot of steel, aluminum, or copper. HARDI noted that many HVACR products may now face a 25% tariff if they exceed certain metal-content thresholds, and a recent update also removed an important exemption tied to U.S.-origin steel and aluminum. That means more uncertainty, and in many cases, higher costs moving through the supply chain.
So what does that really mean for you?
Most likely, it means some equipment and parts may cost more, and pricing may change faster than usual.
For contractors, that can create real challenges:
- quoting jobs with confidence
- protecting your margins
- deciding when to buy
- explaining price changes to your customers
None of that is easy, especially during a busy season. But the good news is there are some practical ways to stay ahead of it.
What is changing?
According to HARDI, HVACR products are generally being treated as “derivative products.” If a product contains more than 15% steel, aluminum, or copper, it may now be subject to a 25% tariff on the value of the entire product. Products at 15% or less may be exempt. HARDI also said the latest update removed the exemption for U.S.-origin steel and aluminum, making it harder for some products to qualify for lower tariff treatment.
In plain English: products with a lot of metal in them are the most likely to be affected, and some of those added costs will likely show up in the prices customers see. HARDI specifically said these changes will likely be passed through the supply chain and could result in significant price increases.
How to make smart business adjustments now
This is one of those times when a few small changes can make a big difference.
Review your pricing more often
If your pricing only gets reviewed every month or two, now may be a good time to tighten that up. Costs may move faster than normal, especially on metal-heavy equipment and replacement parts.
Shorten your quote windows
If you leave quotes open too long, you may end up eating a cost increase. A shorter expiration window can help protect your margins.
Add simple pricing language to estimates
For larger jobs, it may help to include a note that pricing is subject to manufacturer increases or market-driven changes before equipment is ordered.
Keep a closer eye on margin
When business is busy, it is easy to focus on volume. But in a market like this, margin matters more than ever. Make sure your jobs are still producing the profit you need.
Buy strategically
This does not mean panic-buying. It means looking at the products you move the most and making smart inventory decisions where it makes sense.
Talk to customers early
You do not have to over-explain it. A simple heads-up can go a long way:
“Because of ongoing industry cost changes, some HVAC product prices may shift with little notice. If you are ready to move forward, ordering sooner can help avoid possible increases.”
That kind of communication helps customers understand that this is bigger than one contractor or one distributor.
What we recommend customers focus on
Right now, it is worth asking:
- Which products in your business are most likely to be affected?
- Are your selling prices still protecting your margin?
- Do your open quotes need a second look?
- Are there key items you should stock before the next increase?
- Is your team prepared to explain these changes clearly and confidently?
The companies that stay proactive will be in a much better position than the ones that wait until the higher costs are already here.
Final thought
We know price changes are never fun, and uncertainty is even harder. But staying informed and making a few smart adjustments now can help protect your business and keep you in a strong position.
The biggest takeaway from HARDI’s update is that these tariff changes could create meaningful price pressure across HVAC products, especially where steel, aluminum, and copper play a major role.
We are keeping a close eye on it and will continue sharing updates as we learn more.