NEFI members may have seen recent headlines about more changes to tariffs ordered by President Trump. Late last month, the temporary Section 122 tariffs, a broad import surcharge in place since February, expired.  The President rolled out a new round of Section 301 tariffs targeting most major U.S. trading partners, with a start date timed to coincide with the end of the section 122 tariffs. In effect, one set of tariffs lapsed as another took its place, and while the shift drew significant media attention, we believe there to be little bearing on the heating fuel or HVAC industries.

Our trade counsel has reviewed the changes and has highlighted several key exemptions that minimize the impact of the new section 301 tariffs to the heating fuel or HVAC industries.  Heating oil and propane are exempted from the new section 301 tariffs.  Goods already covered by Section 232 tariffs (such as steel, aluminum, autos, and medium- and heavy-duty trucks) are exempt, and goods that originate under the U.S.-Mexico-Canada Agreement (USMCA) are also exempt. Taken together, these carve-outs mean most members should see no meaningful new cost exposure. NEFI continues to monitor trade policy developments closely and will alert members promptly of significant tariff changes. In the meantime, please contact the NEFI team with any questions about your specific operations.

For more information, contact NEFI President and CEO, Jim Collura at jim.collura@nefi.com.