How Tariffs Will Impact HVAC Costs for Homeowners

Tariffs are the talk of the town, and the million-dollar question is how both proposed and existing tariffs will impact your budget and the cost of heating and cooling your home. At Dominion Service Company, we understand your concerns. We will work with you to help you find the most effective, economical heating and cooling solutions for your needs in these uncertain times. 

Why Are HVAC Prices Increasing in 2025?

The short answer is tariffs and the threat of tariffs. These have a direct and indirect impact on the price of heating and cooling systems. When it comes to HVAC systems specifically, the U.S. has proposed a 25% tariff on all Canadian imports, which includes a significant number of components and raw materials used in the manufacture of furnaces, air conditioners, and heat pumps. 

Rising Costs of HVAC Equipment & Materials

HVAC systems are composed of a wide range of materials and components that are sourced from all over the world. There are a wide range of factors that have driven the cost of production upwards. Increased domestic regulations, rising shipping costs, greater competition for materials, weather events, wars, and other factors have caused prices to rise. 

Adding pressure to this and many other industries related to everything from construction to transportation is the rising cost of steel and aluminum, which means that every furnace, air conditioner, duct, etc. now costs more to mine, smelt, ship, process, and fabricate. Finally, there is the rising cost of circuit boards, thermostats, sensors, controllers, refrigerants, and spare parts. It’s a perfect storm of rising costs that are causing rising prices.

Increased Costs of Electronics

The rising cost of circuit boards, thermostats, sensors, controllers, refrigerants, and spare parts is notable. As these components become smarter and more sophisticated, it’s to be expected that they will also cost more to produce. Adding pressure to this is the increased cost and competition for the raw materials and manufacturing space required to deliver these components. 

Supply Chain Delays

We all saw with the COVID-19 pandemic how vulnerable the global supply chains were to disruption. This situation is similar. The difference is that the supply chains are intact, but they are stalled by indecision and inability to make effective business decisions. Some companies are stockpiling shipments for fear of having to pay exorbitant tariffs on arrival. Many businesses can’t afford the dramatic increase, particularly on shipments coming from China that can be subject to tariffs of up to 145%. 

Thus, it’s a safe bet that as these kinks in the supply chain worsen, the cost of purchasing new HVAC systems will rise. Even if deals are struck between nations, there is already significant congestion within the already tight global shipping market. This means that once inventory already in the country begins to run out, it may be many months before prices stabilize as those inventory levels are replenished. 

The bottom line for homeowners is that there is a significant likelihood of delays and rising costs even if everyone comes to an agreement in the coming months. 

What Homeowners Can Do When Faced With Rising Costs

Preparation is the greatest asset of every homeowner right now. Preparing your home and budget takes some effort, but it’s well worth the time invested. To that end, there are some steps we recommend taking sooner rather than later:

• Replace outdated or malfunctioning equipment: Replacing your outdated or malfunctioning systems is always prudent. This improves energy efficiency and helps ensure you don’t suffer a sudden system breakdown. It’s also the best option for taking advantage of tax credits and incentives that might also be in jeopardy. 
• Repair and maintain existing equipment: If your system requires minor or major repairs, repair it now. The longer you wait, the greater the potential for component shortages and higher prices. 
• Consider financing options: Financing allows you to pay for repairs or replacements over time. 

Why Choose Us?

When you need top-quality systems and a team that services all brands, you can rely on our team. As an authorized Lennox dealer, we offer a broad selection of systems for every need and budget. We’ll never take shortcuts and guarantee your satisfaction with our quality workmanship. 

When you need help navigating the best HVAC system for your home, contact the team at Dominion Service Co. to speak with our specialists.