HARDI: What If the President Pulls the Tariffs?

Demand remains strong in the HVAC sector despite the high steel prices, but distributors share an uncomfortable feeling that the favorable conditions may not last. “Business is good, and prices are high, but they are going to fall. When is anyone’s guess. You just have to try to protect yourself and have the least amount of inventory on the floor when it happens,” said one member of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI) during the trade group’s monthly conference call on Tuesday.

The main source of concern for HARDI members is all the conflict on the trade front. “The biggest factor haunting the market is President Trump and the tariffs,” said one executive. “What will happen with Canada, Mexico and Europe? There is a lot of uncertainty in the market right now.” Added another: “The market fundamentals are not supporting the high steel prices, it’s the tariffs. If they are pulled, the price would drop instantly.”