Additional charges to customers for repairs and replacement are a reality this year because of tariffs imposed on other nations from the United States. After a roller coaster ride pricing increases in the last four years due to COVID-19 and supply chain issues. The next pending issue coming is tariff increases to my customers. Thankfully this has not occurred yet, but all my whole sellers are warning this on the horizon depending on Geo Political follow thru of tariffs. We do not want to be doom and gloom.
There is no solution to these issues than understanding that if your thinking about replacement or repairing your HVAC or plumbing systems, your better off getting it done now to avoid uncertainly of the future.
The phrase "It will never be cheaper to replace than right now, is absolutely true".
Here is a quoted excerpt that is being reported in the News February 3,2025 that was also updated with reaction to the roller coaster of changes (A Trade publication).
"Editor’s note: Shortly after this article was posted, Pres. Trump announced via social media that a conversation with President Claudia Sheinbaum of Mexico has led to a one-month pause of tariffs with Mexico to allow time for further negotiations. Trump said Sheinbaum has agreed to “immediately” deploy 10,000 Mexican soldiers to the border, specially designated to stop the flow of fentanyl and illegal migrants into the U.S.
Second update: Multiple outlets are now reporting that Trump has additionally agreed to pause tariffs on Canada for 30 days, after Canadian Prime Minister Justin Trudeau announced his government would name a fentanyl czar, list Mexican cartels as terrorist organizations, and “launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering.” Trudeau also said Canada will implement a $1.3 billion border plan and pledged 10,000 “frontline personnel” to work on protecting the border.
On February 1, President Donald Trump signed an executive order implementing a new 25% tariff on imports from Canada and Mexico, along with an additional 10% tariff on imports from China. Energy resources from Canada will be subject to a lower 10% tariff.
According to the Trump administration, this action is intended to hold Mexico, Canada, and China accountable for their promises of halting illegal immigration and stopping fentanyl and other drugs from flowing to the United States.
“Tariffs are a powerful, proven source of leverage for protecting the national interest,” a White House press release stated. “President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”
But what does this mean for the HVAC industry?
HVAC system prices have been steadily increasing over the past few years. Among the multiple reasons for the surge are rising costs of raw materials, persistent supply chain issues, strong consumer demand, and higher operating costs for manufacturers. Also, regulations from federal departments — such as the Department of Energy’s updated minimum energy efficiency standards and the Environmental Protection Agency’s AIM Act — have also contributed to the increased cost of equipment.
The substantial price increases in HVAC equipment over the past few years have made affordability a growing concern for consumers and HVAC contractors. Industry leaders are already seeing 2025 as more of a repair versus replacement market, and higher pricing could only enhance that trend.
If these tariffs are here to stay, the expectation is the costs of raw materials and any supply chain issues could increase. Major HVAC manufacturers such as Carrier, Daikin, Lennox, and Trane have manufacturing facilities in Mexico while also receiving components from China — not to mention that some overseas HVAC companies manufacture products exclusively in China." ...