Tariffs are threatening your air conditioning bill this summer

Many consumers will pay more for air conditioning this summer as President Donald Trump's trade war collides with existing price pressures, a coolant shortage and scorching forecasts that are set to drive up utility bills.
'It is a sad time to need a new HVAC system,' said Scott Shelton, owner of Charlotte Comfort Systems in North Carolina.
Heating, ventilation and air conditioning contractors say they've been weathering higher costs since the post-Covid recovery, for everything from labor and raw materials to a newly mandated refrigerant. With supply chains stretching deep into countries facing new tariffs, HVAC firms say it's impossible to avoid passing at least some of the higher costs on to customers.
Shelton estimates his expenses have already risen by 80% since the pandemic.
It is a sad time to need a new HVAC system.
Scott Shelton, owner of Charlotte Comfort Systems, Charlotte, N.C.
'It'll affect lower and middle classes more than I've seen in my 38 years' experience in this industry,' he said of ongoing and expected cost increases.
The prices U.S. manufacturers charge for HVAC and refrigeration equipment remain near the record highs they hit last summer, before Trump won re-election, and some contractors expect his levies to drive them higher.
Take a component that cost $1,000 in March, said Aydin Mehr, who manages Denver-based UniColorado Heating and Cooling: 'Currently it's going to cost $1,100,' he said. 'In September, that same thing will cost $1,300 to 1,400.'
Adding to the expected squeeze are steeper utility bills for many households. U.S. residential electricity costs are forecast to average $784 this summer, up 6.2% since last season and the highest level in 12 years, the National Energy Assistance Directors Association (NEADA) said Thursday. An early heat wave is already baking the Southwest and Texas this week, with Oklahoma City, San Antonio, Austin, Houston and Dallas breaking May records.
Mehr voiced concerns about this summer. 'We're stockpiling like crazy to keep our prices low as long as possible,' he said, but his inventory is 'already diminishing rapidly.'
Some top air-conditioner makers are responding to the Trump administration's reshoring push, with Carrier on Tuesday announcing a $1 billion five-year investment to expand domestic production. Analysts say the HVAC sector is relatively well-positioned to handle tariffs, including on steel and aluminum. But the industry still relies heavily on overseas suppliers, and contractors say many American importers are already curbing shipments, unsure which tariffs will stick.
The United States imported more than $15 billion worth of air conditioners last year, about five times as much as it exported, according to the Observatory of Economic Complexity. Mexico and China — which currently face double-digit blanket tariffs — accounted for the largest shares of U.S. spending on AC imports, at 50% for Mexico and 19% for China. Analysts estimate less than half of Mexican-made HVAC equipment complies with the U.S.-Mexico-Canada Trade Agreement, the deal Trump brokered in his first term that spares some Mexican and Canadian goods from the 25% tariffs he imposed on them in his second.
Many suppliers, which typically purchase on 90-day schedules, had already halted ordering by the time the U.S. and China agreed Monday to pause most of their tariffs for 90 days, Mehr said.
'In the best-case scenario, we're going to have a Covid-style type of thing where they're going to be waiting months just to get their stuff,' he predicted.
A key factor is the industrywide shortage of R-454B, the more eco-friendly coolant that regulators began requiring in January under a bipartisan measure Trump signed in 2020. Mehr was expecting a major manufacturer to ship new heat pumps that use R-454B in mid-April, 'but it still hasn't shipped because they didn't import the parts from China to finish them.'
We're stockpiling like crazy to keep our prices low as long as possible.
Aydin Mehr, general manger of UniColorado Heating and Cooling, Denver
He foresees the worst of the refrigerant shortage to last until mid-June or early July, easing right around when supplies of budget to midgrade AC units may start to dwindle.
These fears may not pan out nationwide, or at all, but the coolant crunch is already driving up costs and delaying installations as manufacturers hike prices. Appliance giant Honeywell last month announced a 42% surcharge on R-454B, citing 'the cumulative effect of increased costs and raw materials' amid strong demand.
Some HVAC contractors even accuse manufacturers of using supply-chain disruptions to price-gouge. Makers of cooling systems announced tariff-related price hikes 'before it even became real,' said Barton James, president and CEO of the Air Conditioning Contractors of America. 'The whole industry continues to test the waters on what's the breaking point for the consumer. And right now, we've not found it.'
The Air-Conditioning, Heating and Refrigeration Institute called that allegation 'offensive.' The manufacturing trade group's members have their own concerns about the uncertainty posed by 'on again/off again tariffs,' spokesperson Francis Dietz said in a statement. 'Far from using tariffs as a cover to raise prices, manufacturers are going out of their way to minimize the economic impacts' and keep products affordable.
Home Depot acknowledged a 'fluid environment' but declined to comment on specific product categories, and Lowe's didn't respond to a request for comment. Both home improvement giants report earnings next week.
A White House spokesperson didn't respond to a request for comment.
The crunch comes as meteorologists anticipate above-average temperatures in much of the U.S. this summer, after 2024 became the hottest summer on record.
The National Weather Service forecasts excessive heat to generate hotspots from Maryland to Maine and Oregon to Texas. Parts of Utah, Nevada, Colorado and New Mexico are most likely to see hotter-than-average days over the next three months. With extreme heat exacerbated by climate change becoming more frequent, researchers say U.S. heat-related deaths have more than doubled in recent decades.
This year there could be less federal aid to help households keep their homes at safe temperatures.
Shortly after gutting the entire staff of the Low Income Home Energy Assistance Program, Trump proposed a budget that would slash the initiative's $4 billion in funding to zero. LIHEAP was established in 1981 to help struggling families cover home heating and, later, cooling costs including AC installations. But it has been strained by what advocates describe as chronic funding shortfalls coupled with surging demand for summertime relief.
NEADA, which represents state officials who disburse LIHEAP aid, estimates that households facing utility arrears now owe a cumulative $21 billion, the most in four years.
'Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,' NEADA Executive Director Mark Wolfe said in a statement.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

South Wales Argus

24 minutes ago

• South Wales Argus

Morrisons customers 10 per cent off discounts this summer

Every Monday, the 10% discount will be available on all of the Market Street counters when customers swipe their More Card at the checkout. Customers will be able to see how much they have saved with their discount on Morrisons Butchers, Fishmongers, Pie Shop, Bakery, Oven Fresh, Deli, Pizza, Cake Shop and Salad Bar by looking at the bottom of their receipt. On Mondays, More Card holders will also be able to receive the 10% discount in the Café and Café Brews. Fraser Lovatt, Managing Director of Market Street at Morrisons, says: 'We know our customers value the range, quality and service they get from our Market Street counters. So, as a thank you to our loyal More Card customers, we're thrilled to be offering them a 10% discount on our Market Street counters and in the Café every Monday.' This follows news that Morrisons has 'bounced back' from a cyber attack which disrupted its Christmas trading, with stronger sales and profits for the latest quarter. But the UK's fifth-largest supermarket chain warned that rising inflation is driving 'subdued' sentiment among shoppers. Last week, the Bradford-based grocery business revealed that group sales grew by 4.2% to £3.9 billion for the 13 weeks to April 27, compared with the same quarter a year earlier. Recommended reading: It comes as the company pushes on with its major turnaround plan, which has seen it overhaul a raft of store operations. In March, Morrisons announced that 365 staff were at risk of redundancy because of plans to close some of its cafes, convenience stores, florists and fresh food counters. As a result, it said it would shut 52 cafes, all 18 market kitchens, 17 Morrisons Daily convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies.

Scottish Sun

30 minutes ago

• Scottish Sun

Rangers EGM vote revealed as Ibrox club plan £20million investment, new share issue and company switch

Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) IT'S officially all systems to go for the new American-led era at Rangers. That's after the Ibrox club's new US owners' immediate plans were rubber-stamped at an EGM. Sign up for the Rangers newsletter Sign up 3 New Rangers chairman Andrew Cavenagh Credit: Alamy 3 Leeds chairman Paraag Marathe is now also in a senior post at Ibrox Credit: Alamy 3 05.06.2025 Rangers FC press conference for new head coach Russell Martin: Russell Martin Credit: Willie Vass It was just a few weeks ago when the American consortium comprised of health insurance tycoon Andrew Cavenagh and 49ers Enterprises sealed the deal to take over Rangers. After months of talks, the Gers announced at the end of May that it had all gone through, heralding the start of a new era for the Light Blues. Cavenagh was immediately installed as the club's new chairman with 49ers chief Paraag Marathe - who's also the Leeds United chairman - taking up the position of vice-chairman. The big changes continued with Kevin Thelwell quickly beginning work as sporting director before Russell Martin arrived as head coach the week after the takeover was officially done. Martin is working with the Gers squad for the first time today with the players back for pre-season training. With plenty of change in and around the club, fans are now keen to see new players come in the door sooner rather than later. And now, a big step forward to that becoming a reality has been confirmed. For the first time since taking the helm, Cavenagh and Marathe are in Scotland. They've headed for Glasgow where Rangers have been holding an extraordinary general meeting (EGM) this morning at the Double Tree by Hilton hotel in the city centre. The meeting saw several key resolutions voted on by the club's shareholders. Rangers captain James Tavernier spotted training with ex-team-mate and old Premiership rival Ryan Porteous who branded him 'bad loser' The biggest of those was to ratify the proposed £20million injection into the club. Immediately after the takeover was sealed, the new owners stated their intention to invest the £20m immediately and launch a new share issue - subject to shareholder approval. Top of the agenda, the resolution has been passed, alongside a second resolution that was directly linked to it. It means new boss Martin will now have the funds available to add to his squad. Time is of the essence in terms of squad strengthening with the Champions League qualifiers getting underway in a month's time. Rangers will take on Panathiniakos in the second qualifying round. The rubber-stamping of the investment wasn't the only thing on the agenda, however. One of the other resolutions voted on was to ratify Rangers' switch from PLC (public limited company) to a private limited company (LTD). Since 2012, the club have been operating as 'The Rangers International Football Club PLC.' Going forward, it will now be known as 'Rangers International Football Club Limited.' The shift to a limited company sees a change in the business structure and essentially gives the new owners an additional layer of control. It also means that any new shares cannot be offered publicly going forward. All resolutons passed with over 98% approval. Keep up to date with ALL the latest news and transfers at the Scottish Sun football page

Daily Record

31 minutes ago

• Daily Record

What is the Strait of Hormuz and why does it matter to global trade?

The UK could be hit hard if Iran closes the Strait of Hormuz in response to American strikes on its nuclear sites Fears of a widening conflict in the Middle East have deepened in recent days after the US bombed Iran. President Donald Trump made the unprecedented decision to bomb three Iranian nuclear sites over the weekend. The UK was not involved in the air strikes but was informed beforehand. John Swinney has called for the conflict to end, while Keir Starmer said Iran's nuclear programme is a "grave threat" which US military action would "alleviate". ‌ The world is now bracing for Iran's response to the US joining Israel in the biggest western military action against the Islamic Republic since its 1979 revolution. ‌ One way Iran could hit back, according to analysts, is to close off the strait of Hormuz, a vital trade route, through which over a fifth of the world's oil supply, 20m barrels, and much of its liquified gas, passes each day. Iran's parliament approved a measure to close the strait. Iran has threatened to close the strait in the past, which would restrict trade and impact global oil prices, but has never followed through. This time may be different, though. What is the strait of Hormuz? The strait of Hormuz lies between Oman and Iran and links the Gulf to the north with the Gulf of Oman to the south and the Arabian Sea beyond. It is 33km wide at its narrowest point, with the shipping lane just 3km wide. The strait is one of the world's most important oil chokepoints and is crucial to the US and beyond, as the strength of the global economy is heavily dependent on the flow of oil. Why is it so important? ‌ About one-fifth of the world's total oil consumption passes through the strait. Between the start of 2022 and last month, approximately 17.8 million to 20.8m barrels of crude, condensate, and fuels flowed through the strait daily, according to data from analytics firm Vortexa. Members of the Organization of the Petroleum Exporting Countries (OPEC) – Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq – export most of their crude via the strait, mainly to Asia. The US Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area. ‌ What happens if it closes? Closing the strait would trigger a global oil crisis, skyrocket inflation rates and potentially plunge the economy into a downturn. On Sunday, specialists cautioned that such a move to shut the strait might also elicit "a significant military response" from both the US and its allies. Ami Daniel, CEO of maritime data company Windward, noted that even the mere "perception" of an Iranian assault on shipping could reduce maritime traffic to a mere trickle. ‌ Countless drivers could be hit with soaring fuel costs at the filling stations. The UK, which relies on imports for roughly half its oil supply, stands to be particularly exposed. Iran has been warned that shutting down the strait would be tantamount to "economic suicide", as reported by The Telegraph. ‌ US Secretary of State Marco Rubio has called on Iran's allies, including China, to exert pressure on Tehran to keep the Strait of Hormuz open, stating that any closure would be a "terrible mistake". Iranian oil also uses the same gateway, and shutting Hormuz risks bringing Gulf Arab states, who have been highly critical of the Israeli attack, into the war to safeguard their own interests, according to The Guardian. China would be particularly affected. The world's second-largest economy buys almost 90 per cent of Iran's oil exports, which are subject to international sanctions. ‌ What is Iran saying about the strait? Iranian lawmakers have voted to obstruct vital shipping routes through this key waterway after Trump decided to engage in the conflict between Israel and Iran. Iran's Press TV reported at the weekend that the Iranian parliament approved a measure to close the strait of Hormuz However, the vote by the Iranian parliament is not definitive, and state television has emphasised that the ultimate decision lies with Iran's top security officials. ‌ On Sunday Iran's foreign minister, Seyed Abbas Araghchi, said that Trump's decision to bomb Iran " will have everlasting consequences". Israel has made a "grave mistake" and "must be punished." He did not, however, make any specific reference to the strait of Hormuz. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.