COLUMBUS, Ohio — In a unified display of industry alignment, four of the nation’s most prominent heating, ventilation, air conditioning, refrigeration (HVACR), and plumbing trade associations have sent a high-stakes joint letter to U.S. Trade Representative (USTR) Jamieson Greer. The coalition is pressing the Trump administration to fiercely protect and maintain the core benefits of the United States-Mexico-Canada Agreement (USMCA) as trade negotiations and the pact’s formal joint review process loom on the horizon.
The letter—signed by leadership from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), Heating, Air-conditioning & Refrigeration Distributors International (HARDI), the Air Conditioning Contractors of America (ACCA), and the Plumbing-Heating-Cooling Contractors—National Association (PHCC)—emphasizes that the livelihoods of 1.9 million American workers depend on the stability provided by the trilateral trade accord.
Representing a vast network of manufacturers, wholesale distributors, and installation and service contractors across the United States, the coalition warns that without targeted exemptions, sensible rules of origin, and relief from overlapping tariffs, the integrated North American supply chain that underpins modern climate control and refrigeration could face severe disruptions.
Main Facts: The Stakes of the USMCA for North American Climate Control
At the heart of the coalition’s advocacy is the argument that modern HVACR and water-heating manufacturing is not confined within a single national border. Instead, it relies on a finely tuned, interdependent trilateral network spanning the U.S., Mexico, and Canada.
The USMCA, which replaced the North American Free Trade Agreement (NAFTA) in July 2020, established a modernized, predictable trading framework. According to the industry trade groups, this framework has successfully incentivized billions of dollars in capital investments across North America. It has allowed domestic companies to establish robust regional supplier relationships, optimize manufacturing output, and reliably supply the United States market with critical climate-control infrastructure.
However, these gains are now perceived to be under threat. With the Office of the U.S. Trade Representative actively reviewing and navigating the future of the trade agreement, industry leaders are mobilizing to ensure that the unique operational realities of HVACR production are fully understood in Washington, D.C.
"Maintaining a strong and predictable USMCA will support continued investment in HVACR manufacturing across North America, support U.S. workers and businesses throughout the supply chain, and ensure that essential heating, cooling, ventilation, and refrigeration equipment remains available when consumers and businesses need it," the joint letter asserts.
Chronology of Events: From NAFTA’s Transition to the Current USMCA Review
To understand the urgency behind the HVACR coalition’s recent letter to Ambassador Jamieson Greer, it is helpful to examine the timeline of trade policy shifts that have shaped the North American manufacturing sector over the last decade:
- November 2018: Following extensive negotiations between the Trump administration, Mexico, and Canada, the United States-Mexico-Canada Agreement is officially signed, designed to update and replace the 24-year-old NAFTA framework.
- July 1, 2020: The USMCA officially enters into force, introducing stricter rules of origin, provisions for labor and environmental standards, and modern digital trade chapters aimed at boosting domestic manufacturing.
- 2021–2024: HVACR manufacturers and distributors navigate pandemic-era supply chain bottlenecks, inflationary pressures, and environmental transitions—such as the phasedown of hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act—relying heavily on the USMCA’s tariff-free framework to stabilize component sourcing.
- Late 2024 / Early 2025: As political leadership transitions within Washington, trade policy priorities shift toward aggressive tariff strategies, including proposed universal baseline tariffs and specific Section 232 actions on metals and manufactured imports.
- Early 2026: With the formal USMCA Joint Review process approaching and trade negotiations intensifying under U.S. Trade Representative Jamieson Greer, industry anxieties mount regarding potential regulatory friction and tariff exposure.
- Recent Weeks: ACCA, HARDI, AHRI, and PHCC unite to draft and submit a formal joint intervention to USTR Greer, outlining three critical policy priorities to safeguard the sector.
Supporting Data: Economic Footprint of the HVACR Sector
The numbers underpinning the HVACR industry’s plea to the federal government demonstrate an enormous economic footprint that stretches far beyond simple residential comfort.
1.9 Million American Jobs
The 1.9 million domestic workers supported by the USMCA span a diverse array of specialized trades and advanced manufacturing disciplines. This includes:
- Original Equipment Manufacturers (OEMs): Engineers, assembly line workers, and metallurgists designing high-efficiency chillers, furnaces, heat pumps, and commercial refrigeration units.
- Wholesale Distributors: Logistics personnel, inventory managers, and counter staff who ensure that replacement parts reach local markets within hours of a system failure.
- Contractors and Technicians: Field personnel who install, maintain, and service complex mechanical systems in residential, commercial, and industrial settings.
Critical Infrastructure Interdependence
HVACR equipment is not discretionary consumer electronics; it is foundational to public health, safety, and economic productivity. The joint letter underscores the vital role these systems play in:
- Healthcare Facilities: Maintaining sterile environments, precise surgical suite temperatures, and critical air filtration in hospitals and clinics.
- Cold Chain Logistics: Preserving the integrity of the nation’s food supply, grocery distribution networks, and temperature-sensitive pharmaceutical products (including vaccines) from production to point of sale.
- Educational Institutions: Ensuring safe indoor air quality, adequate ventilation, and thermal comfort for millions of students and faculty nationwide.
- Industrial and Commercial Operations: Regulating manufacturing environments, data centers, and office buildings where thermal management prevents catastrophic equipment overheating.
Because of this deep societal reliance, any friction or disruption in the cross-border flow of specialized compressors, heat exchangers, valves, and electrical controls can trigger cascading shortages that ripple through the broader economy.
Official Responses and Coalition Priorities
In their communication with USTR Jamieson Greer, the four trade associations did not merely ask for general protection; they put forward a pragmatic, three-point policy roadmap designed to align trade enforcement with industrial reality.
1. Broad Relief from Section 232 Tariffs
The coalition is requesting broad relief from Section 232 tariffs (historically applied to steel and aluminum imports) for HVACR equipment, parts, and components that officially qualify as "originating" under the strict rules of the USMCA. Because manufacturing a modern heat pump or commercial refrigeration unit requires specialized metal alloys and structural components that may not always be domestically available in sufficient quantities, penalizing USMCA-compliant inputs undermines the very supply chain the agreement sought to foster.
2. Workable Rules of Origin
The HVACR manufacturing process is remarkably complex. A single commercial rooftop unit may incorporate thousands of individual parts sourced from a variety of specialized tier-one and tier-two suppliers across the globe, with heavy concentration in North America. The coalition is urging USTR to advocate for workable, practical rules of origin that encourage domestic and regional production without imposing impossible administrative burdens or bureaucratic penalties that fail to reflect modern engineering realities.
3. Exemptions in Future Tariff Actions
To provide the long-term investment certainty required for capital-intensive projects—such as retooling factories to build next-generation, low-GWP (global warming potential) equipment—the coalition wants future tariff actions to include statutory carve-outs or exemptions for essential HVACR goods. Without this predictability, companies may hesitate to commit capital to North American facilities, potentially eroding the region’s competitive edge against Asian and European manufacturing hubs.
Industry Implications: Looking Ahead to the USMCA Joint Review
The joint intervention by ACCA, HARDI, AHRI, and PHCC serves as a bellwether for how legacy American manufacturing sectors are navigating the complex intersection of protectionist trade policies and integrated global supply chains.
As the U.S. government prepares for the upcoming USMCA Joint Review, the Office of the United States Trade Representative faces a delicate balancing act. On one hand, the administration remains committed to using tariffs as leverage to reshore critical industrial capabilities and protect American blue-collar jobs. On the other hand, as the HVACR coalition points out, domestic manufacturing in specialized sectors is frequently dependent on free-flowing, regional inputs that cross the Canadian and Mexican borders multiple times before final assembly.
If the USTR heeds the warning of the HVACR trade associations, the resulting trade posture could set a vital precedent for other advanced manufacturing sectors. By recognizing that North American economic integration can actually strengthen—rather than weaken—domestic industrial resilience, the administration has an opportunity to secure the stability of 1.9 million American workers while safeguarding the critical infrastructure that keeps schools, hospitals, and homes running safely.
The coalition has confirmed that it stands ready to collaborate closely with Ambassador Greer and the broader USTR negotiating team as the formal review process unfolds, ensuring that the voice of the heating, cooling, and refrigeration sector remains central to American trade policy.
