Tariff Pause Announced But Home Service Businesses Still Face Rising Costs
The U.S. has paused most of its planned tariff increases—but only for 90 days. That gives HVAC, plumbing, electrical, and other home service businesses a short window to plan, stock up, and talk to customers before prices may rise again.
Here’s what’s happening and what you should be doing now.
What’s Happening
On April 5, a 10% global tariff took effect on nearly every imported product. Just days later, a 90-day pause was announced, halting most additional increases—but not all.
Tariffs on goods from China have been raised sharply to 125%. That means certain materials and components—especially in HVAC and electronics—are still going up in price. Goods from Canada and Mexico remain mostly exempt under USMCA rules.
Even with the pause, costs are already rising, and suppliers are adjusting. Businesses that prepare now will be in a better position when the 90 days are up.
How It Will Impact Your Business
You’re likely to see:
New price lists from manufacturers reflecting current and projected costs
Longer lead times due to customs processing or sourcing changes
Tighter margins on flat-rate or fixed-bid work
More price-conscious homeowners weighing upgrades carefully
HVAC
- Higher costs on systems, repair parts, and refrigerant components
- Delays on equipment orders or key components
- Pressure on margins for flat-rate and fixed-bid projects
Plumbing
- Increases on copper pipe, valves, fittings, and water heaters
- Delays or limited availability on imported fixtures and specialty items
- More cost-conscious homeowners postponing upgrades
Electrical
- Price hikes on panels, breakers, lighting, switches, and smart home controls
- Risk of product substitutions as inventory shifts
- Higher material costs could drive changes in system design or installation plans
General Contracting and Remodeling
- Raw material and finish good costs going up (appliances, hardware, etc.)
- Project scope changes as homeowners adjust to higher budgets
- More complexity in pricing out jobs with longer lead times or product variability
Whether you’re replacing an AC unit, installing a tankless water heater, or wiring a smart thermostat, your cost basis is changing. And with more customers shopping around or comparing prices online, your ability to explain these changes matters more than ever.
What You Should Do Now
This 90-day pause is a chance to prep—not relax. Here’s how to use the time:
- Call customers with older systems (10+ years) and recommend scheduling replacements before costs go up further
- Follow up on older quotes and pending repair jobs—customers may not realize price changes are happening
- Shorten your quote validity window to 7–15 days and add language that accounts for supplier-driven cost changes
- Talk to your vendors weekly to stay up to date on pricing updates, availability, and shipping timelines
- Stock key parts and systems if you have the space and resources—especially high-turnover items
- Make sure all content is current—this includes website offers, social media posts, print flyers, and internal documents
- Train your sales and service teams to explain what’s going on with confidence and clarity
- Review your AI and social media policies to ensure everything going out reflects your brand and your priorities
- Keep communication professional—avoid turning business pages into political forums. Focus on service, trust, and delivering what your customers need
A little preparation now can save you time, money, and headaches later. These are the types of changes that reward businesses that move early.
How to Talk to Homeowners About Rising Prices
Homeowners may not be following trade policy. They just want their project done, and they want to feel like they’re getting a fair deal.
When the quote is higher than expected, be direct:
“We’re seeing cost increases across the board due to new U.S. tariffs. That includes equipment, materials, and even common repair parts. These aren’t price changes we control—they’re coming from our suppliers. We’re doing everything we can to keep pricing fair.”
Then, offer solutions:
- Offer financing: Spreading payments out makes the project more manageable.
- Focus on long-term value: Higher-efficiency systems still save money over time.
- Create urgency without pressure: “We’re hearing that another round of supplier increases may be coming. Locking in now could help avoid even higher costs later.”
- Provide options: Good-better-best pricing gives customers flexibility.
- Reinforce your value: Professional work, done right, still matters more than ever.
Being upfront builds trust. If you don’t talk about it, someone else will—and it may not be accurate.
Final Takeaway
Price increases and supply challenges aren’t new, but the businesses that adapt quickly stay ahead.
Whether you’re in HVAC, plumbing, or electrical, the message is the same: review your pricing, update your communication, and make sure your customers know what to expect.
You don’t need to panic, but you do need to act. Focus on clarity, consistency, and helping people make informed decisions before rising costs or limited availability make those decisions for them.
