As of April 2025, sweeping changes to U.S. trade policy are creating new cost pressures across nearly every industry tied to building operations. For commercial property managers and industrial facility managers, the effects are already being felt in higher material prices, longer equipment lead times, and unexpected increases in repair costs. These changes are directly impacting the bottom line when it comes to managing commercial property maintenance.
With the introduction of new tariffs—starting with a 10% baseline on all imports and climbing as high as 145% for goods from China—the price of equipment, replacement parts, and essential building materials has risen sharply. For properties already facing tight budgets and high expectations for tenant satisfaction and regulatory compliance, understanding the implications of these tariffs is more important than ever.
Why Tariffs Matter in Commercial Property Maintenance
The U.S. government’s tariff policy, updated in April 2025, applies new import taxes on nearly all foreign goods, with higher rates on countries with trade surpluses such as China, Vietnam, Japan, and Mexico. According to the Associated General Contractors of America (AGC), construction-related imports—like steel, aluminum, and electrical components—are all subject to these new taxes, driving up the cost of materials used for everything from HVAC system replacements to structural upgrades.
While the stated intent of these tariffs is to promote domestic manufacturing, the reality for most property managers is more complex. In practice, few U.S.-made building systems are truly domestic. Nearly every HVAC unit, plumbing fixture, and mechanical system relies on imported components. The result is higher costs for everyday repairs and longer delays for larger capital improvements. Even sourcing domestic alternatives hasn’t avoided the ripple effect, as prices on those goods are also rising in response to higher demand and tighter supply.
HVAC Systems: One of the Hardest-Hit Areas
HVAC systems are playing a bigger role than ever in commercial property maintenance, especially across industrial facilities. These systems are no longer seen as passive infrastructure—they’re now essential for supporting advanced manufacturing, regulating controlled environments, and meeting energy efficiency goals. As property owners plan capital improvements or respond to tenant build-out requirements, HVAC upgrades are becoming a top priority.
At the same time, costs are climbing fast. Equipment prices are projected to increase by 15% to 30% in 2025 due to the new tariffs. Even systems assembled in the United States are affected, since most rely on imported parts like compressors, circuit boards, motors, and copper coils.
The pressure on property budgets is compounded by rising demand for high-performance systems. In sectors like logistics, pharmaceuticals, and high-tech manufacturing, tenants expect systems that go beyond heating and cooling. Features like humidity control, smart diagnostics, and real-time energy monitoring are becoming standard, which further increases reliance on global supply chains and imported electronics.
As more industrial facilities break ground and older systems reach the end of their useful life, commercial property managers must factor HVAC pricing volatility into long-term planning. Those managing new developments or major retrofits should consider engaging HVAC contractors earlier in the process to help manage costs, scope, and compliance. To better understand how this growing demand is reshaping expectations, read more about the rise of industrial HVAC systems in 2025.
Plumbing Repairs Also Facing Price Hikes
Plumbing systems, especially those with smart leak detection and temperature control technologies, are also seeing inflated repair and replacement costs. This is due in part to the reliance on imported microchips and smart sensors, which are primarily manufactured in Asia. As tariffs rise on countries like Taiwan and Vietnam, the cost of these technologies is increasing.
Additionally, water heaters, pipe fittings, and valves—many of which are imported or assembled using foreign metals—are now more expensive. According to Goodin Co., more than two-thirds of plumbing-related products use parts sourced from China, Mexico, or Canada, all of which are currently impacted by tariffs.
For commercial property managers trying to maintain water conservation standards and system efficiency, this adds another layer of cost and complexity to their maintenance plans.
Building Materials and Structural Repairs Getting More Expensive
Rising tariffs are also driving up costs for structural materials used in commercial property maintenance. Steel and aluminum prices have increased by as much as 25%, affecting everything from elevator repair parts and metal door frames to window systems and roofing components.
According to CF&P Insurance Brokers, many of the most common items involved in commercial building upkeep—such as radiators, tanks, wire conduit, sinks, and fasteners—now come at a higher cost due to tariffs. These increases are passed down to contractors and, ultimately, property managers responsible for maintaining operational standards.
Even materials considered “Made in the USA” are feeling the effects. As demand shifts to domestic suppliers, pricing has climbed in response, and availability has become more limited.
Supply Chain Disruptions and Longer Timelines
Tariffs are not only increasing costs—they’re also causing delays. Manufacturers looking to shift away from Chinese or Mexican suppliers must go through a redesign and re-certification process, which could take six to twelve months. In the meantime, many repair and replacement timelines are being extended, particularly for commercial HVAC systems and smart plumbing technologies.
Lead times for parts and systems are stretching from days to weeks or even months, leaving building managers scrambling for interim solutions. These delays may also affect tenant satisfaction, disrupt operations, or delay inspections for compliance purposes.
What This Means for Insurance and Operating Budgets
Rising material and labor costs are also having an impact on commercial property insurance. Higher costs to repair or replace systems mean insurers may raise premiums to offset larger claim payouts. For property managers working within strict operating budgets, this means adjusting line items for both maintenance and insurance.
Increased pricing volatility is also making it harder to forecast and bid accurately for upcoming projects. Contracts that were signed before the April 2025 tariff changes may no longer reflect real-world pricing, leading to unexpected change orders or vendor negotiations.
What Facility Managers Can Do Right Now
There are several steps property and facility managers can take to protect their operations against the effects of tariffs on commercial property maintenance:
Reevaluate service contracts to check for pricing flexibility or surcharge clauses.
Discuss pricing and availability with HVAC and plumbing vendors—some may have pre-tariff inventory still available.
Review insurance policies to ensure building replacement values are current and reflective of new material costs.
Monitor tariff suspension timelines. Some country-specific tariffs are currently paused until mid-July 2025.
These steps won’t eliminate the effects of tariffs, but they can help mitigate financial surprises and keep maintenance budgets on track.
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The new tariff regime is already reshaping the cost landscape for commercial property maintenance. From HVAC systems and plumbing components to structural repairs and replacement parts, virtually every facet of building maintenance is being impacted. For commercial property managers and industrial facility managers, staying informed and proactive is key.
The best way to protect your building assets and budget is to remain aware of how global trade policies are influencing your vendors, your repair costs, and your long-term maintenance planning.
Visit Property Manager Insider for the latest updates on how tariffs are affecting commercial property management across the U.S.
