Note: This article is based on information available as of February 3, 2025. The situation is subject to change, and ACCA will update this article as more information becomes available.
In a flurry of activity, President Trump’s proposed 25% tariffs against imports from Mexico and Canada were both paused on Monday, February 3.
A 10% tariff on Chinese goods will still go into effect on Tuesday, February 4.
The Trump administration had threatened tariffs against Canada and Mexico in demand for greater enforcement at the borders regarding fentanyl and drug trafficking. In response, Canadian Prime Minister Justin Trudeau announced a 25% retaliatory tariff on U.S. goods entering Canada.
Early on February 3, Mexico responded to the Trump administration’s threat, mobilizing the country’s National Guard to station 10,000 solders on the U.S.-Mexico border to protect against drug trafficking.
Later in the afternoon of February 3, Canada announced a border reinforcement plan and tariff pause after speaking with President Trump.
Tariffs on both Canada and Mexico have been paused for 30 days.
The 10% duty on Chinese imports still stands, with China’s ambassador to the United Nations indicating that China will file a lawsuit with the World Trade Organization against President Trump’s tariff. Additional retaliatory tariffs or measures from China are expected.
How do tariffs impact HVACR contractors?
A tariff is essentially a type of tax on imported goods when they are brought into a country from abroad.
Tariffs directly affect the price of imported goods, leading to higher prices throughout the supply chain.
The HVACR industry relies heavily on a global supply chain, sourcing components and materials from various countries, including Mexico and Canada. Tariffs could have several implications:
- Increased equipment costs: Many HVACR systems and components are imported from Mexico and Canada. Tariffs may lead to higher costs for manufacturers as they import equipment and parts, costs which may be passed down to contractors.
- Supply chain adjustments: Contractors might need to seek alternative suppliers or renegotiate terms with existing ones to mitigate the impact of increased costs. This could lead to delays and require adjustments in project timelines.
- Operational changes: In the face of rising costs, contractors will need to either absorb increased costs of goods and work toward cutting costs in other areas of their businesses or pass the cost on to customers.
ACCA’s commitment
The Air Conditioning Contractors of America (ACCA) is dedicated to supporting its members through these challenging times. We are closely monitoring the situation and will provide updates and resources to help contractors navigate the evolving trade and regulatory landscape. Our mission is to equip HVACR contractors and their teams to meet pressing challenges and opportunities, and we will continue to advocate on behalf of the industry to mitigate the impact of these tariffs.
ACCA works hard to advocate behind the scenes on behalf of contractors; but we can’t do it alone. ACCA membership dues power our advocacy efforts and enable us to advance contractor interests so that contractors can keep their focus on doing what they do best: running successful, impactful businesses.
Thanks to our members for supporting this vital work.
Not a member? Learn more here.
The post 30-day pause for Trump administration tariffs on Canada, Mexico; 10% Chinese tariffs still to go in effect on February 4 appeared first on ACCA HVAC Blog.