How New Tariffs Will Affect HVAC Prices in 2025

HVAC equipment prices are likely to increase 15-30% in the near term, which usually translates to around a 6-10% price increase for homeowners’ out of pocket cost.

On April 2, 2025, the Trump administration introduced significant import tariffs. All imports now face a 10% baseline tariff, with specific surplus nations facing higher reciprocal tariffs, such as China (145%), Mexico (25%), Vietnam (46%), Japan (24%), and Thailand (36%) (Update: All country-specific tariffs other than China have been suspended until mid-July as of April 22nd, 2025).

These broad tariffs will impact all HVAC products in the market with significant price increases. In this article, we’ll review the tariffs, then go manufacturer by manufacturer and where they produce their HVAC products.

At UniColorado, pre-tariff inventory was depleted in mid-2025 and current pricing reflects tariff-adjusted costs. Contact us for current pricing on HVAC installations in Denver.

4/22/2025 update: Current tariff rates have been incorporated. All country specific tariffs are suspended until July, 2025.

As of April 2nd, 2025, the U.S. government implemented a new tariff structure that affects virtually every imported HVAC product. All country-specific reciprocal tariffs other than China were suspended through July 2025, but the baseline 10% tariff on all imports remained in effect throughout.

The tariffs are part of a broader economic strategy outlined by Stephen Miran, Trump’s Chair of the Council of Economic Advisers, as reported in Bloomberg. Miran’s paper, “A User’s Guide to Restructuring the Global Trading System,” published before his nomination, calls for a weaker US dollar and significant tariff hikes to reshape global trade. His vision is to boost US exports by devaluing the dollar while maintaining its status as the world’s dominant reserve currency. Tariffs serve as a negotiating tool, potentially offsetting inflation risks by strengthening the dollar against foreign currencies. This strategy aims to address trade imbalances and extract concessions from countries like China, Canada, and Mexico, though it carries risks of retaliation and higher consumer prices.

Miran argues that US tariff rates have been too low, and his approach could maximize public welfare and government revenue, despite criticism from mainstream economists. For example, he suggests importers might reduce margins to avoid losing market share, but acknowledges potential burdens on American consumers, especially in sectors like HVAC reliant on imports.

Virtually every major HVAC manufacturer, both U.S.-based and international, will be affected by these tariffs. Even brands that build units in the USA rely on imported parts, and no HVAC brand is 100% made in America. Below is a breakdown of how top manufacturers are handling the situation and what price changes you can expect.

Carrier Global

Sub-brands: Carrier, Bryant, Payne, Heil, Tempstar, Comfortmaker

Manufacturing Locations & Tariffs:

• 🇺🇸Middle & High-end units (Performance & Infinity series) assembled in U.S. plants, but components still incur(10% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇨🇳Ductless mini-splits from China via Midea partnership(145% tariff)
• 🇲🇽Builder & Mid residential units largely from Monterrey, Mexico(25% tariff)

Announcements

• In March, Carrier announced price increases (~6%)
• In April, Carrier announced new price increases (~10%)

Trane Technologies

Sub-brands: Trane, American Standard, RunTru, Oxbox

Manufacturing Locations & Tariffs:

• 🇺🇸Higher-end Trane/American Standard systems predominantly assembled in U.S. plants, but components still incur(10% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇨🇳Budget lines (RunTru, Oxbox) mainly from China(145% tariff)
• 🇲🇽Some units from Monterrey, Mexico(25% tariff)

Announcements

• In March, Trane announced price increases (~6%)
• In April, Trane announced new price increases (~8%)

Mitsubishi Electric

Sub-brands: Mitsubishi Trane

Manufacturing Locations & Tariffs:

• 🇹🇭M & P-series units made in Thailand(10% tariff)
• 🇲🇽M & P-series units made in Mexico(25% tariff)
• 🇯🇵SM-Series made in Japan(24% tariff)

Announcements

• In April, None as of April 2025. 6-12% expected initially.

Lennox International

Sub-brands: Lennox, Armstrong, Allied Air

Manufacturing Locations & Tariffs:

• 🇺🇸Signature, Elite, and MiniSplit series assembled in the US but components still incur(10% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇲🇽Merit series made in Mexico(25% tariff)

Announcements

• In January, Lennox announced price increases (~10%)
• In April, Lennox announced new price increases (~6%)

Daikin Group

Sub-brands: Goodman, Amana, Daikin

Manufacturing Locations & Tariffs:

• 🇺🇸Core residential units (Goodman, Amana) assembled in Houston, Texas but highly exposed to component tariffs(10% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇹🇭Some units made in Thailand(34% tariff)
• 🇯🇵Few high-end Daikin models made in Japan(24% tariff)

Announcements

• In January, Daikin group announced price increases (~10%)
• In April, Daikin announced price increases (~8%)

Paloma Industries

Sub-brands: Rheem, RUUD, Fujitsu

Manufacturing Locations & Tariffs:

• 🇺🇸Unitary assembled in Arkansas, Georgia but exposed to component tariffs(10% tariff)
• 🇨🇳Ductless (Fujitsu) made in China(145% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇲🇽Budget models made in Mexico(25% tariff)

Announcements

• In April, Rheem announced price increases (~6%)

Fujitsu General

Sub-brands: Rheem

Manufacturing Locations & Tariffs:

• 🇨🇳Most units made in China(145% tariff)
• 🇹🇭Some models made in Thailand(34% tariff)

Announcements

• In April, Rheem announced price increases (~12%)

Bosch Thermotechnology

Manufacturing Locations & Tariffs:

• 🇨🇳Most units made in China(145% tariff)
• 🇹🇭Some models made in Thailand(34% tariff)

Announcements

• In March, Bosch announced price increases (~12%)

Midea Group (including MrCool)

Manufacturing Locations & Tariffs:

• 🇨🇳Most units made in China(145% tariff)
• 🇹🇭Some models made in Thailand(34% tariff)

Announcements

• In N/A, not distributed through professional channels

Johnson Controls

Sub-brands: York, Luxaire, Coleman

Manufacturing Locations & Tariffs:

• 🇺🇸Unitary assembled in Arkansas but highly exposed to component tariffs(10% tariff)
• 🇨🇳Component exposure to Chinese tariffs(145% tariff)
• 🇲🇽Budget models made in Mexico(25% tariff)
• 🇯🇵Ductless via Hitachi from Japan(24% tariff)

Announcements

• In April, None as of April 2025.

Tariffs in 2025 target not just whole HVAC units, but every imported component inside them. Even American-assembled systems rely on parts manufactured worldwide, and each component carries its own tariff - stacking costs on both new equipment and repairs.

Compressors

Expected Price Impact: 40%+

Many U.S. manufacturers use Copeland (Emerson) scroll compressors. Those made in the USA avoid tariffs, but models from their Mexican plant face a 25% duty. Other compressors, like small rotary units from Chinese companies (e.g. GMCC or Highly), are hit with a 145% tariff. Even Panasonic and Hitachi compressors from Japan incur a 24% tariff. Copeland’s recent price increase of 17–40% reflects these rising costs.

Inducer and Blower Motors

Expected Price Impact: 40%+

Electric motors used in HVAC systems, including indoor blowers and outdoor fans, are often sourced from China or Mexico. For example, motors from Chinese manufacturers like Zhongshan Broad-Ocean are now subject to a 145% tariff, while Mexican-made ones face a 25% tariff. Even motors from Vietnam see a 46% tariff. This shift in production may eventually push manufacturers to source motors from countries with lower tariffs or bring production to the U.S., but for now, rising costs are inevitable.

Circuit Boards and Controls

Expected Price Impact: 30%+

Modern HVAC units incorporate various electronic control boards, many of which are made in China, Southeast Asia, or Mexico. With tariffs of 145% (from China) and 25% (from Mexico), components like smart thermostats or Wi-Fi modules are getting pricier. Manufacturers might try to offset these costs by redesigning boards or sourcing alternative parts, but consumers can expect higher repair costs as these changes take time.

Copper Tubing and Aluminum Coils

Expected Price Impact: 25%+

Copper and aluminum are essential for refrigerant coils and lines. Many copper products are imported from Mexico or Vietnam, incurring at least a 10% tariff, and aluminum parts face their own metal tariffs or the existing 25% duty on steel and aluminum. This means manufacturers face higher costs for coil subassemblies, and products like Lennox coils made in Mexico will now be 25% more expensive when imported to the U.S.

Cross-border tariffs and double tariffing

Cross-border tariffs hit every imported HVAC component - sometimes twice. Take a heat pump assembled in Mexico using 40% Chinese parts: the Chinese components face up to 145% tariff, and then the finished unit faces another 25% tariff when imported from Mexico. That stacking can dramatically increase retail prices.

Switching suppliers takes time. Replacing a Chinese compressor source with a U.S. alternative requires six to twelve months of testing, certification, and production integration. A Mexican assembly plant disrupted by component shortages produces longer lead times for completed units - adding both cost and scheduling delays for contractors and homeowners.

The 2025 tariffs drove up HVAC prices nationwide, and those increases are fully baked into current equipment costs. Pre-tariff inventory has been exhausted across the industry - there is no pre-tariff stock left to find.

If you were already planning an HVAC replacement this year, acting now is likely cheaper than waiting. Manufacturers have already implemented two rounds of price increases, and additional increases are possible as remaining pre-tariff component inventory clears. Waiting 6-12 months risks another 10-15% on top of current pricing.

Colorado homeowners can offset some of the increase through available Xcel Energy heat pump rebates and state programs. Contact us for current installed pricing - our install volume gives us better equipment costs than most contractors in the state.

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