Honeywell adds 42% tariff surcharge on R454B

USA: Honeywell has announced a surcharge of 42% on orders for its lower GWP refrigerant R454B due to what it claims are unprecedented demand and the imposition of trade tariffs.

In a letter to its North American customers on April 11, Honeywell claimed that the “rapidly evolving geopolitical and economic climate” were continuing to impact its Solstice and Genetron product portfolio.

“Due to unprecedented demand for 454B, which cannot be met with domestic production alone, we are forced to source a significant portion of the supply through international markets to meet North American market demand,” said in the letter signed by stationary refrigerants general manager Amanda Josey. 

The 42% surcharge is being added to all invoices for R454B orders placed on and after February 15. In addition, Honeywell said it would implement a price increase of $4/lb on all new orders of R454B as of April 9, 2025, with a 42% surcharge invoiced on the new price.

Further, the company said that prices for its other Solstice HFO products would increase by 10%, and pricing for Genetron products by 5%, as of April 9, in order to offset rising raw material costs.

Chemours is also reported to have announced a $2.85/lb increase on R454B orders. 

While Europe and the Far East have mainly adopted R32 as the preferred replacement for R410A, R454B has become the USA’s preferred option. An A2L refrigerant, like R32, R454B blends 68.9% R32 with 31.1% of the HFO R1234yf, giving it a lower GWP of 466.