Tariffs Push Up HVAC Equipment Costs in Canada

Tariffs Push Up HVAC Equipment Costs in Canada

Canada: Heating and cooling equipment prices in Canada are rising as tariffs on steel and aluminium increase manufacturing and import costs across the HVAC industry. Industry participants reported that the cost of products such as furnaces, central air conditioners and storage water heaters has increased by approximately 20% to 30%, with the higher costs largely being passed on to end users. The impact is being felt most strongly in products that rely heavily on metal components, while consumers replacing ageing systems are facing higher-than-expected purchase costs.

Industry representatives noted that Canada remains heavily dependent on HVAC equipment manufactured in the United States, as well as imports from Japan, South Korea and China, limiting the availability of alternative supply sources. While the United States has announced a reduction in tariffs on certain derivative metal products, including some residential heating, ventilation and air-conditioning equipment, from 25% to 15% effective 8 June, industry stakeholders stated that tariff-related cost pressures continue to affect the market. They also indicated that distributors and contractors have limited scope to absorb additional costs, resulting in higher prices for consumers.

Source: CBC