ACCA Warns Revised Section 232 Tariffs Will Push HVAC Equipment Costs Higher

ACCA on April 18 warned that revised Section 232 tariffs on steel, aluminum, and copper will push HVAC equipment prices higher heading into cooling season. The revision, which eliminates a prior exemption for U.S.-origin metal content, raises the effective tariff rate on Mexican-made HVACR equipment from roughly 8% to nearly 25% per HARDI data. ACCA called on members to contact lawmakers before the increases work their way into contractor invoices.

Timing is part of the story. Mexico is a major production base for residential split systems sold into the Southwest, and the change takes hold just as California contractors ramp up summer installs.

How the Pass-Through Works

Distributors typically see tariff-driven cost changes first, absorb a piece, and pass the rest to contractors over 30 to 90 days. Contractors then decide how much to eat and how much to rebill. In 2018 and again in 2022, that cycle produced 6-10% effective price increases on residential equipment within a quarter of similar tariff moves. There's no reason to expect a different pattern this time.

Copper is the part most likely to hit fast. Copper line set and coil costs move weekly on published indexes, so distributors adjust almost in real time. Steel and aluminum effects on cabinet work take longer to land because they ride through finished-goods inventory. Equipment manufacturers don't pay for metal at spot, they pay on contracts with pricing reopens tied to indexes, and those reopens happen on a lag.

What It Means in California

Contractors shouldn't expect rate relief from legislators before the tariff flows through. That train has left the station for the 2026 cooling season. The realistic planning move is to reprice new proposals to reflect a 5-8% equipment cost bump over the next 90 days, and to be blunt with customers about why. Blaming "supply chain" gets old fast.

For context on how tariffs have reshaped repair-versus-replace math over the past two years, see our piece on tariffs, appliance prices, and repair demand.

ACCA is urging members to contact their congressional delegations. Whether that moves the needle on an administration already committed to the tariffs is a separate question. Contractors should assume it doesn't and plan accordingly.