Canada’s Steel Crackdown: What It Means for Your HVAC Costs in 2025

Introduction: When Steel Becomes a Political Football

If you thought steel was just for skyscrapers, shipping containers, and that old barbecue that’s somehow still kicking in your backyard—think again. As of July 2025, steel has become the MVP in a high-stakes trade war between Canada, the U.S., and China.

And no, this isn’t just Ottawa politics playing bumper cars with Beijing and Washington. If you’re a Canadian homeowner or HVAC business owner in Ontario, this has real-world consequences—from the cost of installing a new furnace to how quickly your heat pump gets repaired this winter.

Let’s break it down—politics, policy, and what it means for your home’s heating and cooling system.

Why Canada Just Slammed the Door on Foreign Steel (Especially China’s)

Prime Minister Mark Carney didn’t mince words: Canada is slapping 25% to 50% tariffs on steel imports from countries without free trade agreements (China, we see you), and implementing tariff rate quotas even on imports from so-called “friendly” nations like South Korea and Vietnam. The reason? To stop what’s called “steel dumping”—flooding a market with underpriced steel that crushes local producers.

In Carney’s own words:

“We must rely more on Canadian steel for Canadian projects.”

Translation? Domestic manufacturers—especially those in Ontario’s steel hub of Hamilton—are finally getting backup. For years, they’ve watched cheaper, foreign steel eat their lunch while Trump-era U.S. tariffs squeezed Canada’s steel exports.

What Triggered This? Trump. Again. 

It all started (again) with President Donald Trump doubling down on steel tariffs—first at 25%, then later cranking it up to 50% on Canadian imports. That left Canada in a jam: flood the market with cheap offshore steel or retaliate.

Cue Carney’s steel-centric comeback.

But this isn’t just about making Hamilton happy. This policy change affects:

• Construction costs
• Manufacturing timelines
• HVAC equipment prices
• Housing development in Ontario
• And potentially, your next furnace or AC unit

Steel, HVAC, and the Snowball Effect 

You might be wondering—what’s this got to do with HVAC?

Here’s the reality: Steel is a core material in nearly every HVAC component—from the sheet metal in ductwork and heat exchangers to the casings on furnaces and air conditioners. The more expensive steel becomes, the more manufacturers like Lennox, Trane, or Carrier have to spend. That cost eventually reaches wholesalers, contractors… and yes, you.

At LG Home Comfort, we’re already seeing early-stage ripple effects:

• Longer lead times for new HVAC units
• Slight increases in parts pricing
• Higher costs for ductwork in custom HVAC designs

If you’re planning a home renovation, commercial HVAC installation, or simply upgrading that outdated furnace, timing matters now more than ever.

Let’s Talk Tariff Breakdown (The Simple Version)

Carney’s steel policy can sound a bit bureaucratic, so here’s your no-fluff breakdown:

What does this mean? If your HVAC system uses steel sourced from China—even indirectly—it’s likely getting more expensive to build or replace.

The Global Fallout: China Isn’t Pleased

Of course, China wasn’t thrilled. The Chinese embassy called Canada’s new tariffs:

• “A violation of WTO rules”
• “Disruptive to the global trade order”
• “Damaging to China-Canada relations”

They even hinted at retaliatory tariffs on Canadian agricultural products, which could put another sector under strain. And while both countries agreed in June to mend trade ties, this move by Canada could bring the frost back to diplomatic relations.

So why do it anyway?

Because, as Carney put it, “We’re giving ourselves far more than any foreign government can take away.” It’s a bold shift toward economic self-sufficiency—a term not heard often in recent Canadian trade history.

What This Means for Ontario Homeowners and Contractors

Let’s bring it home—literally.

Ontario is in the middle of a housing crunch and a push for greener, energy-efficient HVAC systems. From heat pump rebates to furnace replacements, there’s a wave of homeowners upgrading their HVAC game.

Here’s where steel tariffs hit close to home:

1. Higher Equipment Costs:
   Many heat pumps, air conditioners, and furnaces rely on steel enclosures, internal coils, and structural frames.
2. Delayed Shipments:
   If manufacturers are adjusting supply chains to avoid high-tariff steel, wait times could increase—especially heading into winter.
3. Fewer Low-Bid Offers:
   Contractors may pull back from low-margin jobs if material costs keep rising.
4. Better Support for Local Suppliers:
   On the bright side, more HVAC companies (ours included) are doubling down on Canadian-made systems, reducing reliance on uncertain foreign supply.

How LG Home Comfort Is Responding

We’ve seen this coming.

That’s why LG Home Comfort is:

• Prioritizing Canadian-made HVAC systems wherever possible
• Locking in prices early for 2025 fall and winter installs
• Working with domestic suppliers to ensure faster delivery
• Offering free consultations for homeowners unsure when to upgrade

If you’re wondering whether to wait or act now, here’s a tip:
Beat the price hikes. Get your furnace or AC installed before steel costs hit peak volatility this fall.

The Bigger Picture: Is Canada Leading the Way?

Surprisingly, yes. Catherine Cobden, president of the Canadian Steel Producers Association, says:

“Canada is the first country in the world to implement these extra quota controls to prevent Chinese steel dumping.”

Even the U.S.—the instigator of the tariffs—hasn’t taken this step. It positions Canada as a steel policy trailblazer, though not without potential WTO drama or trade retaliation.

Whether it’s bold or risky, this is a defining moment in Canada’s domestic manufacturing strategy—and it’s going to affect everything from skyscrapers to split-system ACs.

Conclusion: So, Should You Care?

Absolutely.

Steel prices don’t just live in stock charts and shipping containers. They show up in:

• The cost of replacing your HVAC system
• Delays in your renovation project
• The sticker price of your next home comfort upgrade

As Canada tightens its steel borders, HVAC homeowners and contractors alike will need to adapt—and quickly.

At LG Home Comfort, we’re already doing just that.

Need Help Navigating All This?

Book your free HVAC assessment today and we’ll walk you through the best options—Canadian-made, energy-efficient, and built to outlast any trade war.

FAQs 

1. Why did Canada impose new steel tariffs in 2025?
To protect domestic steel producers and counter steel dumping from China, especially following higher U.S. tariffs on Canadian steel.

2. How will these steel tariffs affect HVAC system prices? 
Steel is a key component in HVAC units. The tariffs may cause price increases for furnaces, air conditioners, and ductwork. 

3. Will HVAC installation costs rise in Ontario due to tariffs?
Yes, HVAC installation costs may increase as manufacturers pass on higher steel material prices to contractors and homeowners.

4. Are Canadian-made HVAC systems less impacted by tariffs? 
Yes. Choosing Canadian-manufactured HVAC equipment can help avoid delays and minimize cost hikes from imported steel tariffs. 

5. What steel products are targeted under Canada’s 2025 tariffs? 
Steel melted and poured in China, and excess imports from countries without or with free trade agreements now face 25–50% tariffs. 

6. Should I upgrade my HVAC system before prices increase? 
Yes. Acting early in 2025 may help you avoid the price surge caused by supply chain delays and rising steel import costs.