Good morning. If your last equipment order came in higher than the quote you gave the customer, you're not being gouged by your supply house — the increase started at the factory. Here's the chain, and how to stop eating it.
Top story — The 2026 price wave, and why it won't be the last
More than a dozen HVAC manufacturers have pushed through price increases across 2026, mostly in the 3% to 10% range, with some parts lines going higher (ECIKS; ACHR News). The trigger is tariffs. On April 6, 2026, the administration restructured Section 232 so duties now apply to the full customs value of imported derivative products — not just the metal content — and the old exemption for U.S.-sourced steel and aluminum was eliminated (Federal Register; ACCA). Layer on a 50% tariff on the steel, aluminum, and copper themselves, and every cabinet, coil, and line set costs more to build. One piece has since softened: as of June 8, 2026, imported residential HVAC systems and components carry a temporarily reduced 15% derivative rate — down from 25% — through the end of 2027 (Federal Register). That's relief at the margin, not a rollback, and it hasn't unwound the increases already on the books: replacement quotes are running higher across the board this year (Money).
Quick hits
Where the metal hides. Copper sits in your refrigerant lines and coils; steel and aluminum in cabinets, ductwork, and structural parts. Tariffs on all three feed straight into equipment cost (Money).
The exemption that vanished. U.S.-made steel and aluminum used to dodge Section 232; that carve-out is gone, so even "domestic" equipment carries more cost (ACCA).
The June carve-down. A June 1, 2026 proclamation cut the tariff on imported residential HVAC systems and components to a temporary 15% (from 25%) through December 31, 2027, and lowered the "entirely U.S. metal" qualifying threshold from 95% to 85% — a real, if partial, break on finished residential equipment. The 50% tariffs on the metals themselves didn't move (Federal Register).
The Tip — Reprice for a moving target
Stop giving 30-day quotes in a market that moves monthly. Tighten quote validity to 7–14 days, add a short escalation clause ("equipment pricing subject to manufacturer changes at time of order"), and pre-buy your highest-volume SKUs before the next announced increase lands. The shops getting hurt are the ones honoring old numbers on equipment that's since gone up 8%. Protect the spread between what you quote and what you pay — that spread is your margin.
Tool watch — [Not sponsored]
Two free trackers worth a bookmark: the AGC Tariff Resource Center for contractors and ACCA's HVAC tariff guidance. Both keep a running read on what's tariffed and by how much — cheaper than finding out at the counter.
That's the callout. See you next time.
The Callout — the business brief for the trades. We label every commercial placement: [Sponsor], [Affiliate], or [Not sponsored]. Today's Tool watch is our own honest read — no one paid for it. 231J Ramparts Road, Te Anau 9600, New Zealand · Unsubscribe anytime.
Sources: Money — What's Causing HVAC Prices to Rise in 2026 · ECIKS — HVAC makers raise prices this month · ACCA — HVAC Tariffs: What Contractors Can Do · AGC — Tariff Resource Center for Contractors · ACHR News — HVAC Price Increase List: August 2026 · Federal Register — Proclamation 11021, Strengthening Actions Taken To Adjust Imports of Aluminum, Steel, and Copper Into the United States (91 FR 18201) · Federal Register — Proclamation 11032, Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper (91 FR 34085)