Latest news with #CharlotteComfortSystems
Yahoo
15-05-2025
- Business
- Yahoo
Tariffs could hike up your air conditioning bill for your home and car this summer
Americans may find it costs them more to keep their homes cool this summer, and part of the blame for those rising costs could fall on President Donald Trump's economic policies. HVAC — Heating, Ventilation and Air Conditioning — professionals are warning that Trump's trade war, a coolant shortage, and forecasts calling for increasingly hotter days are likely to raise the overall cost Americans spending on their air conditioning this year, according to NBC News. According to HVAC professionals who spoke to the broadcaster, many have been eating the cost of doing business — labor, raw materials, and keeping up with regulations — as it's risen since the end of the Covid-19 pandemic. Like any other industry, HVAC professionals rely on supply chains to get the things they need to do their jobs, and with so many supply lines under tariff thanks to Trump's trade war, the cost of doing business is likely going to be put onto the consumer. Scott Shelton, the owner of Charlotte Comfort Systems, told NBC News he believed that his expenses had risen by 80 percent since the pandemic. Another HVAC professional, Aydin Mehr, said a part that typically costs $1,000 will cost $1,300 or $1,400 come September. He said that many HVAC shops were stockpiling their parts to try to keep their prices low, but noted that even by mid-May his trove is quickly depleting. It's no secret that the planet is warming up thanks to human-driven climate change through the burning of fossil fuels. Hotter days means more demand for air conditioning, which in turn is demand for electricity. The National Energy Assistance Directors Association said on Thursday that U.S. residential electricity costs are expected to average around $784 this year, pushing the average to the highest its been in 12 years. Costs are likely to go up for those who need an air conditioner fixed or installed, and costs are likely to go up for the electricity needed to run a unit, but what about costs for those are in the market an air conditioner? Prices are likely to go up. Last year, the U.S. imported more than $15 billion worth of air conditioners — approximately five times as much as it exported, according to the Observatory of Economic Complexity. Approximately half of the U.S.'s spending on air conditioning went to Mexico, and just under 20 percent went to China. According to experts, less than half of the air conditioner components the U.S. imports from Mexico are covered under the U.S.-Mexico-Canada Trade Agreement. Products covered by the agreements are shielded from Trump's tariffs, meaning HVAC professionals will still take on a noticeable financial burden this year. On Monday, the U.S. and China agreed to pause most of their tariffs for 90 days, but many suppliers buy their products on 90-day schedules, and some had stopped their orders — hoping to avoid Trump's tariffs — well before the U.S. and China reached a deal. It's going to take some time before product finds its way back stateside. '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," Mehr told NBC News. On top of rising electricity costs and the trade war, HVAC workers are also dealing with an industry-wide shortage of R-454B, a more eco-friendly coolant that became required back in January. Trump signed a bipartisan measure into law in 2020 that led to the adoption of the regulation this year. Mehr told NBC News that he was expecting a large manufacturer to ship out the pumps using the coolant in mid-April, but "it still hasn't shipped because they didn't import the parts from China to finish them." Appliance maker Honeywell announced a 42 percent surcharge on the coolant, citing the "cumulative effect of increased costs and raw materials" made worse by an increase in demand. Cooling isn't just a luxury anymore; in some parts of the U.S. having an efficient way to stay cool indoors is a necessity. Families without an efficient means of cooling their living space run the risk of heat stroke and other heat-related health problems.
Yahoo
15-05-2025
- Business
- Yahoo
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'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.' 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. This article was originally published on
NBC News
15-05-2025
- Business
- NBC News
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.
