White House cuts tariffs on machinery, HVAC equipment until 2027

Metal-heavy store work is where tariff changes land first. Before shoppers see a price change on a patio set or a small appliance, store teams can feel it in delayed shelving, slower fixture replacements, tighter remodel budgets, and more repair-vs-replace calls on carts, signage hardware, and HVAC units.

The White House on June 1 cut tariffs on some derivative products tied to steel, aluminum and copper, including agricultural equipment such as combines and harvesters, from 25% to 15% through December 31, 2027. The move also widened the 15% rate to certain mobile industrial equipment, including bulldozers and forklifts, when those products come from trade-deal countries that qualify for that treatment. Reuters reported that residential HVAC systems and components were also brought down to 15% from 25%, while the broader Section 232 structure still includes 50% duties on primary metal products, 25% duties on derivative products and a 15% rate on a subset of derivatives.

That matters for Big Lots because the chain’s store experience is built on physical goods and physical upkeep. Big Lots says it sells furniture, home décor, groceries, apparel, bed and bath, electronics, pets and seasonal products. Its Furniture category includes upholstery, mattress, ready-to-assemble, home décor and case goods, while Hard Home and Other covers small appliances, tabletop, food preparation, home maintenance, home organization, toys and electronics. Those are all categories where metal content shows up in frames, hardware, racks, fixtures, appliances and display equipment.

The practical effect inside stores is straightforward: if landed costs move, so do the choices around markdowns, ad planning, endcaps and store refreshes. A cheaper tariff on some imported machinery or HVAC gear can ease pressure on the capital side of the business, but it can also reshape vendor negotiations and how quickly a store gets updated. For workers on the floor, that can mean fewer last-minute fixture swaps, fewer stalled remodels and a little more room to keep maintenance work on schedule instead of deferring it.

Big Lots is in a position where those details matter more than usual. The company filed for Chapter 11 bankruptcy on September 9, 2024, in the U.S. Bankruptcy Court for the District of Delaware, and under Variety Wholesalers it reopened 219 stores in 2025. Its store locator still shows 219 locations. When a retailer is rebuilding its footprint and assortment at the same time, even a tariff change aimed at machinery and HVAC equipment can ripple into how much gets spent on the back room, the sales floor and the next round of store fixes.