Rising Tariffs and Coolant Shortages Expected to Increase Air Conditioning Costs in U.S.

Rising Tariffs and Coolant Shortages Expected to Increase Air Conditioning Costs in U.S.

USA: Heating, ventilation and air conditioning (HVAC) contractors in the United States are anticipating higher costs for air conditioning systems this summer due to a combination of new tariffs, a shortage of coolant, and increasing utility rates. Industry professionals have pointed to the reliance on imported components, which are now subject to additional tariffs imposed under the trade policies of former President Donald Trump. Contractors have indicated that some of the increased costs will be passed on to consumers, with a disproportionate impact on lower and middle-income households. In 2023, the U.S. imported air conditioners and heat pumps valued at approximately USD 15 billion (EUR 13.8 billion).

HVAC businesses have been managing rising expenses since the pandemic, but current shortages of essential coolants and forecasts of higher summer temperatures are expected to further affect pricing. The National Energy Assistance Directors Association (NEADA) has projected the average household electricity bill will reach USD 784 (EUR 720), reflecting a 6.2 percent increase over the previous year. NEADA attributes the rise to increasing electricity prices and higher demand due to warmer weather. Although Trump recently reduced tariffs on Chinese goods from 145 percent to 30 percent, and China lowered its retaliatory tariffs from 125 percent to 10 percent, economists have noted that the effects of the earlier tariffs are expected to become more visible in consumer prices by June or July.

Source: Irish Star