Manufacturers, Distributors Adjust Prices for Tariffs

The impact of tariffs on imported goods and materials is hitting plumbing and HVAC distributors and manufacturers who are raising prices to adjust.

Companies are sending notices indicating most increases are under 10%, while others may raise rates as much as 25%.

Gateway Supply Co., based in Columbia, South Carolina, sent a letter to customers recently that said the cost of tariffs on imports from Mexico and China is a “force majeure,” a legal term to denote a situation where contractual obligations can’t be met.

Gateway said International Comfort Products, which owns the Heil brand, is increasing wholesale prices by 10% on all residential products, except for a 5% increase on Heil multifamily fan coils and ductless systems.

Two distributors said notices from manufacturers have been coming for weeks, with increases already in effect or taking effect by May.

• Rheem advised distributors prices are increasing 10% on residential tankless water heating equipment, 15% on heat pump water heaters, 6% on tankless heaters 12% on commercial tank water heaters. The increases take effect on May 1.
• Oatey announced increases of 3% to 7.5% on a range of products, which took effect on March 31.
• Zurn Elkway Water Solutions is raising prices on April 15 on a range of products, including such lines as brass, sinks, water filtration, and drain products. Increases range from 2% to 5%.
• BK Resources sent a notice on March 28 that all affected imported products will go up 12% as of April 14.

How manufacturers are affected also varies, depending on much exposure they have from offshore production and imports.

One distributor said how price increases will be handled by local decisions. For example, equipment already in stock could be sold at the prior rates.

Contractors would be well advised to stay in contact with suppliers to keep tabs on when prices might change and order stock accordingly.

Increases fall within range of expectations

The range of wholesale price increases falls within the range of anticipated HVAC price increases, said Alex Ayers, vice president of government affairs at Heating, Air-conditioning & Refrigeration Distributors International (HARDI).

President Trump announced details on tariffs for goods imported from about 90 nations on Wednesday.

“They will go into place immediately, but he’s said that he’s open to negotiation in the future. Long term, though, I fully believe the position is that tariffs, as a long-term revenue source, are valuable, and so there will be at least some level of tariffs. It’s just a question of how high and on who,” he said.

Trades businesses view price increases triggered by tariffs as a hurdle in an already soft sales market.

“We’re already sort of in this repair versus replace market leaning a little more towards repair over the last several months and any price increase is going to continue to lean in the direction of repairing rather than replacing equipment,” Ayers said.

However, contractors and distributors are factoring in pricing adjustments and a HARDI survey found most businesses would prefer to impose permanent price increases rather than try to adjust surcharges as tariffs change.

Some distributors may hold pricing on existing stock, but Ayers expects most will switch to newer pricing across the board because it’s simpler.

How businesses will react in the future remains an uncertainty, with a range of opinions that support the tariff policy to bring back jobs to the U.S. and opposition from those who support free trade in the market.

“Right now, we’ve seen pretty much the full range of reactions, but I’m feeling that it is going to narrow as we actually start to see the economic impact of them,” Ayers said.

This story was first published April 1, 2025. It was updated April 3, 2025.