On June 1, 2026, President Trump issued a proclamation¹ of a partial tariff relief measure moving certain predominantly residential HVAC systems and components that had been treated as steel or aluminum derivative products into a temporary 15% ad valorem duty category, instead of the higher derivative-product rate. The change takes effect June 8, 2026 and is temporary through December 31, 2027.
According to the President’s proclamation, the Secretary of Commerce “has informed me that recent circumstances have affected and are affecting domestic industries that use agricultural equipment, industrial equipment and machinery, and other related products. Many products in these categories are treated as derivative articles of aluminum or steel because they tend to be predominantly composed of aluminum or steel. These products also serve an important role in productive domestic economic activity².”
“In particular, the Secretary recommended that I expand the category of derivative products subject to the temporarily-reduced 15 percent ad valorem duty to include agricultural equipment and certain heating, ventilation, and air conditioning (HVAC) systems and components that are predominately for residential use, which are currently treated as aluminum or steel derivative products³.”
The Managing Director’s point of view:
I applaud the efforts that members of the Florida Refrigeration and Air Conditioning Contractors Association (FRACCA) and Tallahassee lobbyist Edward Briggs have made to educate legislators in Washington about the impacts the EPA regulations and tariffs have had on HVAC contractors’ businesses and the customers they serve.
While it is impossible to know exactly which factors influenced this recent proclamation, I think their actions, along with consumer complaints about rising costs and voices from the manufacturing and farming sectors are finally being heard in Washington.
This proclamation reduces the tariff rate on qualifying residential HVAC equipment and components from 25% to 15%. While that does not return the industry to pre-tariff pricing, it is a positive step that should help moderate future cost increases.
Will manufacturers and importers with existing inventory reduce prices quickly or will they wait until the new inventory is on their shelves? Since equipment is only part of the total installation cost, how much of the savings will ultimately reach homeowners?
Regardless of the answers, one thing is clear: contractor involvement matters.
It is rewarding to see that local HVACR associations, funded by local contractor members and support from local distributors, suppliers and manufacturers, are working together through FRACCA to ensure that the industry’s concerns are heard in Tallahassee and Washington. Whether the issue is workforce development, licensing, refrigerant regulations, taxes, or tariffs, a unified voice carries more weight than any individual company acting alone.
Get involved. The future of our industry depends on it.
²Paragraph 3 of the proclamation
³Paragraph 4 of the proclamation
