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The short answer: On June 1, 2026, a presidential proclamation moved certain residential HVAC systems and components into a reduced tariff category, lowering the Section 232 duty on them from 25% to 15%. The change takes effect June 8, 2026, and is temporary. The reduced rate is scheduled to expire on December 31, 2027, with rates reverting on January 1, 2028. It applies to equipment "predominantly for residential use," not commercial HVAC.
What actually changed for HVAC equipment?
Residential HVAC equipment got a lower import tariff. The June 1, 2026 proclamation added "certain heating, ventilation, and air conditioning (HVAC) systems and components that are predominantly for residential use" to the category of products subject to a temporarily-reduced 15% duty.
Before this change, that equipment was taxed as an aluminum or steel "derivative product" at 25% under Proclamation 11021 (April 2, 2026). HVAC units are tariffed as metal derivatives because they're predominantly made of aluminum and steel.
So the move is from a 25% rate to a 15% rate on covered residential equipment, which amounts to a 10-percentage-point reduction in the import duty.
Which HVAC products qualify for the lower rate?
Residential equipment qualifies; commercial does not.
The proclamation specifies HVAC systems and components "predominantly for residential use." Equipment built for commercial and industrial buildings is not named in this relief and continues to be treated under the existing derivative rules.
The exact product list lives in the proclamation's annexes (which modify the U.S. tariff schedule), so the precise classification of a given model depends on how it's coded for customs.
If you're unsure where a specific unit falls, confirm the HTSUS code with your distributor or customs broker before assuming the 15% rate.
When does it start and how long does it last?
It starts June 8, 2026 and is temporary. The reduced 15% treatment applies to goods entered for consumption on or after 12:01 a.m. Eastern on June 8, 2026, and runs through December 31, 2027. On January 1, 2028, the duty is scheduled to return to the levels set in Proclamation 11021. Treat the lower rate as a defined window rather than a permanent break.
What will I actually pay on a unit?
The headline rate is 15%, but the exact duty depends on where the equipment is made and how much U.S. metal it contains.
The proclamation sets several conditions that can move the number:
- U.S.-made metal content: A 10% rate applies to derivative articles whose aluminum content is entirely smelted and cast in the U.S., or whose steel content is entirely melted and poured in the U.S.
- The "entirely" threshold dropped from 95% to 85%: Equipment now counts as made "entirely" from American aluminum, steel, or copper if those U.S. metals make up at least 85% of the metal weight, down from the previous 95% bar. More products will now qualify for the U.S.-content benefit.
- Country of origin: Special rules apply to imports from certain trading partners (including Japan, South Korea, the United Kingdom, and EU member nations) and to goods from Canada and Mexico that qualify under the USMCA.
Tariffs are assessed on the customs value of the imported good, not the retail price you pay. How much of any change reaches your invoice depends on your supply chain. Confirm specifics with your suppliers.
What this change does not do
It doesn't eliminate tariffs, and it isn't permanent.
Commercial HVAC equipment isn't covered by this relief, and the reduced rate is set to expire at the end of 2027. The underlying Section 232 tariff framework on aluminum, steel, and copper remains in place.
What should HVAC contractors do now?
Plan around the window, and double down on the margin levers you control.
Our recommendation:
- Confirm classifications. Ask your distributor which of your common residential models fall under the reduced 15% rate, and which don't.
- Time larger equipment purchases with the relief window in mind, knowing rates are scheduled to rise again in 2028.
- Protect margin on the revenue side. When input costs are elevated and uncertain, the businesses that stay healthy are the ones maximizing revenue per customer through reviews, referrals, memberships, and technician-driven sales.
If you’re looking to maximize revenue per customer through better reviews, more referrals, and higher membership sales, chat with our team. Find out how our performance tracking and incentive platform turns every single HVAC technician into a top performer.
FAQ
Did HVAC tariffs go up or down in 2026?
For covered residential HVAC equipment, the import tariff went down — from 25% to 15% — under a proclamation signed June 1, 2026, effective June 8, 2026. The reduction is temporary and is scheduled to expire December 31, 2027.
Does the lower tariff apply to commercial HVAC?
No. The relief applies to HVAC systems and components "predominantly for residential use." Commercial and industrial HVAC equipment is not named in the reduction.
When does the 15% HVAC tariff rate expire?
The reduced 15% rate runs through December 31, 2027. On January 1, 2028, the duty is scheduled to revert to the levels set in Proclamation 11021.
Why is HVAC equipment subject to steel and aluminum tariffs at all?
Because HVAC systems are predominantly made of aluminum and steel, they're classified as "derivative products" of those metals under the Section 232 tariff framework, which is why they fall under these duties.
Can the tariff be lower than 15%?
Yes. A 10% rate can apply when a unit's aluminum or steel content is made entirely in the U.S., and the threshold to qualify as "entirely" U.S. metal was lowered from 95% to 85%. Goods from certain trading partners and USMCA-qualifying goods from Canada and Mexico have their own rules.
Source: Presidential Proclamation issued June 1, 2026, "Adjusting Imports of Aluminum, Steel, and Copper Into the United States," amending Proclamation 11021 (April 2, 2026) under Section 232 of the Trade Expansion Act of 1962.
This article is for general information and is not legal, tax, or customs advice. Confirm tariff treatment for specific products with a licensed customs broker or trade attorney.
