If you’re in the market for a new HVAC system, you may have noticed or heard on the news that HVAC prices are increasing. We know a new heating and cooling system is a major expense to your household budget, so we’d like to provide you with some background information and an explanation on what is driving these price increases.
In response to the shrinking job availability in both the aluminum and steel industry, President Trump is issuing a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.
What Does This Mean for the Average American?
The price of that new air conditioning system (or dishwasher, or generator) could rise immensely. In fact, several HVAC companies have already raised the prices of their equipment several times in the months since the tariffs were implemented. Additionally, the price of steel has been rising, unrelated to the tariffs.
Originally, the tariffs were designed to protect both the American steel industry, which has shrunk by 35 percent in the past 20 years, and the aluminum industry, which reduced its number of jobs by 58 percent between 2013 and 2016, according to the U.S. Department of Commerce. However, the tariffs may punish the rest of the economy: if raw material prices increase, HVAC, car, and household appliance manufacturers will have to pass this on to their customers by increasing prices.
HVAC Manufacturers Express Concern
HVAC companies throughout the U.S. have also felt the effects. According to CBS News, The Metalworking Group in Cincinnati spent 1,000 hours renegotiating contracts because it couldn’t follow through with the prices they had promised. They also held back on hiring new employees and spending $500,000 on equipment, which was the company’s original plan.
Quality HVAC Services and Products for Our Customers
As manufacturers begin to feel the effects of the aluminum and steel tariffs, we’d like to advise our customers that they may see a price increase in HVAC units and services. We will continue to provide high-quality and efficient HVAC products and systems to our customers. If you have any additional questions about the effect of tariffs on the products and systems that we offer, we encourage you to give us a call.