ACCA — the Air Conditioning Contractors of America, the primary trade association for US HVAC contractors — launched a Tariff Resource Center on its website this week, designed to help contractors keep track of duties affecting the HVAC industry, including real-time pricing status updates and OEM tariff response statements. The launch reflects the complexity that recent tariff policy changes have created for contractors trying to understand what their equipment actually costs and why quotes from distributors and OEMs keep changing.
The most important disclosure in ACCA's tariff resource is a change that affects equipment manufactured in Mexico — which includes a significant portion of major US brands' residential product lines from Carrier, Lennox, and others. The change is specific, material, and directly affects equipment costs for contractors who buy Mexico-manufactured HVAC products.
What Changed — The Domestic Metal Exemption Eliminated
ACCA's Tariff Resource Center identifies the following as a key development: 'Previously, steel and aluminum sourced from American producers were exempt from Section 232 tariffs — a deliberate incentive to use domestically produced metals. That exemption has now been eliminated.'
The practical consequence for Mexican-made HVAC equipment is dramatic. ACCA explains it directly: 'This is especially significant for HVACR equipment manufactured in Mexico. Previously, roughly 84% of the metal content in those products was U.S.-origin and was exempt. Under the new rules, that product now faces a flat 25% tariff on its entire value — raising the effective tariff rate on Mexican-made HVACR equipment dramatically.'
To understand what this means in dollar terms: a $3,000 wholesale cost residential air conditioner manufactured in Mexico that previously had an effective tariff rate based only on the non-US metal content now faces a flat 25% tariff on the full $3,000 value — a $750 tariff impact on a single unit. Multiply by the volume of Mexican-manufactured equipment flowing through US HVAC distribution and the aggregate cost impact across the industry is substantial.
ACCA's Tariff Resource Center confirms that the elimination of the domestic-metal exemption from Section 232 tariffs has raised the effective tariff on Mexican-manufactured HVACR equipment dramatically — with the full product value (not just the non-US metal content) now subject to a flat 25% tariff, directly affecting equipment costs for contractors purchasing Mexico-manufactured products from major US brands.
Which Equipment Is Affected
Mexican manufacturing is significant for US HVAC equipment supply. Carrier, Lennox, and other major OEMs operate substantial Mexican manufacturing facilities that produce residential air conditioners, heat pumps, and HVAC components for the US market. Specific product lines that contractors should verify with their distributor:
• Carrier and Bryant residential split systems: Carrier operates manufacturing in Monterrey, Mexico. Specific product lines manufactured in Mexico versus US facilities should be confirmed with your Carrier distributor.
• Lennox residential systems: Lennox has manufacturing in Mexico. Verify the country of origin for specific model lines with your distributor, as Lennox also has US manufacturing in locations including Stuttgart, Arkansas.
• Other brands with Mexican manufacturing: Distributors should be providing country-of-origin documentation that identifies which products are subject to the new tariff structure. Request this documentation if it has not been proactively provided.
What Contractors Should Do Right Now
• Visit ACCA's Tariff Resource Center: The centre provides real-time updates on tariff status and OEM responses — the most current available guidance for contractors navigating equipment cost changes.
• Confirm country of origin for your primary product lines: Ask your distributor specifically which products are manufactured in Mexico and therefore subject to the full 25% tariff versus which are US-manufactured.
• Update job cost templates immediately: If you have pricing built around Mexico-manufactured equipment, your cost per unit has increased materially. Jobs quoted before this tariff change was implemented may be underpriced.
• Add tariff escalation language to commercial contracts: Long-term commercial service agreements that include equipment replacement provisions should have explicit tariff and price escalation clauses to protect against cost changes between contract signing and equipment purchase.
Frequently Asked Questions
What is ACCA's Tariff Resource Center?
ACCA (Air Conditioning Contractors of America) launched a Tariff Resource Center on its website in June 2026 to help contractors track duties affecting the HVAC industry, including pricing status updates and OEM statements on tariff impacts. Visit acca.org for current information.
How does the Mexico tariff change affect HVAC equipment prices?
The elimination of the domestic-metal exemption from Section 232 tariffs means that Mexican-made HVACR equipment — previously partially exempt because approximately 84% of its metal content was US-origin — now faces a flat 25% tariff on its entire value. This is a material cost increase for any HVAC product line manufactured in Mexico.