Thursday May 31, the Trump Administration announced additional steel and aluminum tariffs on the European Union, Canada, and Mexico. This latest round of tariffs went into effect on June 1, 2018.
The European Union has already announced it will launch legal proceedings against the United States with the World Trade Organization to challenge Trump’s actions.
After the first round of tariffs went into effect in May, ACCA’s concerns over the increased costs of HVACR equipment caused by tariffs on steel and aluminum proved accurate. With equipment price increases into double digits, these tariffs are negatively impacting professional contractors and consumers. ACCA’s data tracking system shows that when the price of HVACR equipment increases, consumers who are in need of a new system trend toward cut-rate and unqualified individuals to service or replace their equipment. It also shifts the mindset of consumers to opt for putting Band-Aids on aging systems instead of replacing them with today’s more efficient products.
We expect President Trump’s tariff will almost certainly lose any challenge at the World Trade Organization, handing the administration a black eye. ACCA will continue our educational push with Congress and the Administration of the impact of these tariffs.