“Among other things, the [Secretary of Commerce] has informed me that recent circumstances have affected and are affecting domestic industries that use agricultural equipment, industrial equipment and machinery, and other related products,” Trump’s proclamation says. 

Last April, Trump issued new rules for calculating Section 232 metal tariffs, which included a 15% tariff on certain metal-intensive industrial and electrical-grid equipment through 2027.  

The latest adjustment expands the category of derivative products to include certain HVAC systems and components predominantly used in residential applications. For the covered HVAC-related derivative products, the tariff rate is reduced from 25% to 15%. The new rate takes effect June 8.

“In my judgment, this modification appropriately accounts for these products’ roles in productive economic activity in the United States and accounts for recent circumstances affecting the relevant industries and services that use these products,” Trump’s proclamation says. 

According to Heating, Air-conditioning & Refrigeration Distributors International, savings from the adjustment will support $2.9 billion in economic activity and preserve $1.7 billion in value added to GDP that would have been lost under the previous tariff regime. 

“This is a welcome change for the HVACR industry by President Trump,” said Alex Ayers, HARDI’s vice president of government affairs, in a written statement. “HARDI's initial analysis shows the adjustment will help consumers keep nearly $2.3 billion in their pockets by avoiding future price increases resulting from the initial tariff increase.” 

In their first quarter reports for 2026, companies like Lennox and Carrier noted the impact tariffs had on business, citing them, along with fuel and raw material prices, for increased input costs. Without the new adjustments, the Section 232 policies risked continued price increases throughout the supply chain, placing pressure on contractors, distributors, homeowners, and businesses during peak cooling season. 

“We appreciate the Administration recognizing that access to affordable heating and cooling is a matter of safety and economic stability for American families and businesses,” Ayers said. 

The adjustment comes as contractors continue to face rising costs. In April, construction input prices increased 1.7% compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data. 

“Construction input prices surged again in April,” said ABC Chief Economist Anirban Basu in a written statement. “Input prices have now risen more during the first four months of 2026 (6.2%) than over the prior three years (4.8%).  

“While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases.” 

The Section 232 adjustment is the most recent in a series of tariff policies affecting metals since 2018. Meanwhile, the broader tariff landscape remains uncertain. A U.S. appeals court paused a ruling that struck down Trump’s second attempt at implementing 10% global tariffs after the Supreme Court ruled his “Liberation Day” tariffs exceeded his authority.