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On August 22, 2025, Prime Minister Mark Carney announced a significant reset in the trade relationship between Canada and the United States.
Prime Minister Carney announced that most retaliatory tariffs on U.S. imports would be withdrawn beginning on September 1, 2025.
Existing counter tariffs on steel, aluminum, and auto imports would remain in place. As that list of tariffed products includes tariff code 7322, used to include gas furnaces, HRAI continues to urge the federal government to remove this tariff.
These changes mean that products that have been tariffed since March 4th will see tariffs removed on September 1. This list includes products such as refrigeration compressors (code 8418.69), some refrigerator freezers (code 8418 and subcategories), and some fan products (code 8414.51)
Tariffs proposed on April 2 for many types of equipment will not go ahead, such as air conditioners and heat pumps (code 8415 and subcategories), fans and components (code 8414 and subcategories), refrigerated display equipment (code 8418 and subcategories) and several other products.
HRAI has led an early and coordinated campaign against tariffs, holding press conferences, meeting with Members of Parliament, and key department officials at Finance Canada. This work was informed by member feedback supporting the previous free trade environment within North America.
HRAI will continue to work for the return to a tariff-free Canada-U.S. trade relationship. We will continue to analyze the impact of tariffs on our members and will work towards a Canada-U.S. trade environment that strengthens the HVACR industry.
If your company has already paid Canadian tariffs on products now held in inventory, remission (relief from payment or refunding amounts paid) through processes administered by Finance Canada or Canada Border Services may be possible under certain conditions – more information is available on the HRAI website: https://www.hrai.ca/resources.
HRAI hosted a webinar featuring McMillan LLP international trade expert William Pellerin, covering tariff remissions and Canada-U.S. trade issues – it’s available on HRAI’s Youtube page: https://www.youtube.com/watch?v=DgCyN3rvp3s
What’s left? Since Canadian tariffs countering US tariffs on Canadian steel and aluminum products will remain, some products will remain subject to a 25% tariff:
HTS codes included in Canada’s Steel and Aluminum Tariffs (still in place after September 1, 2025)
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Tariff Code
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Description
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Some subcategories of 7322 (see below)
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Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel.
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7322.11.00
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Radiators and parts thereof: Of cast iron
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7322.19.00
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Radiators and parts thereof: Other
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7322.90.10
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Other: For heating buildings
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7322.90.20
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Other: Process air heaters; Switch heaters and sensing heads (hot air and oil fired), horizontal air curtains, for railway tracks
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Some subcategories of 8419 (see below)
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Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 85.14), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-electric.
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8419.11.00
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Instantaneous or storage water heaters, non-electric
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8419.12.00.00
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Solar instantaneous or storage water heaters
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Some subcategories of 8516 (see below)
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Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electro-thermic hair-dressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 85.45.
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8516.10.90
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Electric water heaters of a kind used for domestic purposes
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8516.29.00
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Electric space heating apparatus and electric soil heating apparatus
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For more information, or for assistance on this topic, please contact Perry Chao at pchao@hrai.ca.
