Although you are not on the market for a new car, US President Donald Trump25% of tariffs on car importsIt could own one more expensive.
It is estimated that new taxes to start on April 3 and expand in the coming weeks will increase the average car costs imported from another countryabout thousands of dollars. However, it is expected that repairs to vehicles currently using parts will be more expensive-and as a result, the road insurance costs continue along the road.
While the White House says these tariffs support domestic production and increase $ 100 billion, per year, per year,StressThis stress on the global supply chain of the automotive industry brings significant disruptions. Trade shops and car repairs are likely to have a choice, but to raise prices – drivers throughout the country to pay more for everyday maintenance.
Here's what you need to know.
How will the tariffs affect my other car repairs?
It depends on what you need to fix and where you go to fix your car. However, some industrial analysts warn that drivers could see how the costs would jump in the coming weeks or months.
“If you are bringing your car to repair, it is likely that it will have a role that comes from another country,” said Jessica Caldwell, a leader of the automatic purchase of Edmunds. “This price you pay is likely to be directly influenced by an increase (of these tariffs).”
WednesdayA statement of automatic tariffsPoints specifically for engines, transmissions, parts of the traction tract and electrical components. This covers many repairs, as it is, remarks Caldwell, and the administration also signaled the possibility of future expansion.
And while car manufacturers can develop new price strategies for new vehicles affected by tariffs, Caldwell expects to be less likely to absorb the costs of individual parts – may be left with the bill with the bill.
Most car repair markets relyed strongly on imports, especially from the largest US business partners. According to the February figures from the American Property Casualty Insurance Association, a business group that represents domestic, automotive and business insurance companies, about 6 of every 10 car parts used in American car repairs are imported from Mexico, Canada and China.
“You can't enter the sales representation today and you don't see the UN parts,” said Skyler Chadwick, Director of Product Advision in Cox Automotive. However, the acquisition and offer differ between each administrator, adding, so it is all the more complicated to be nailed when exactly the prices increase after these tariffs are manifested.
Desiree Hill, owner of Crown's Corner, automatic repairs and mechanics in Conyers in Georgia, says car tariffs are already hurting her business. She was working on repairing the Opel's 1960s and ordered part of Germany, but the manufacturer canceled the order for tariffs.
“I can't get (part) anywhere in our country. The period. So it was very disappointing,” she said.
About half of the cars on which they work are made foreign, so tariffs make the repairs of these cars more difficult.
“Unfortunately, we have no choice but to increase prices if they are raised on us,” she said. “We can't take such a kind of loss.”
Prices of car repairs have been rising for years, with analysts aimed at increasing labor costs and more expensive components needed for vehicles with advanced technology.
Edward Salamy, Executive Director of the Association of Automobile Body, also says that automobile companies are trying to “get a monopoly” to reduce corrective measures to their own or processes and reduce the possibilities for consumers.
Tariffs, said, just deteriorating the problem: “Many of these distributors will have no choice but to increase their price list.”
How do car dealers drive?
Joshua Allrich, who operates used car cars called Allrich Auto in Atlanta, is one of those who are afraid of facing higher costs while trying to save money to its customers.
“It will do things much more expensive,” Allirch said, adding that while people are looking forward to the possibility that people are in a hurry to buy cars before the tariffs are reflected, his business will soon have to adapt. “My cake is economic cars, affordable cars. And now this tariff will hit us directly, because it only causes things to rise.”
Chadwick says retailers and other administrators will have to be as transparent as possible, as these tariffs will be reflected, and are also preparing for difficult conversations about growing prices with customers.
He adds that tariffs will also exert pressures on the market for further sales. Used cars must often be operated before sellers can sell them back to customers – re -open the door for higher repair costs due to tariffs. And “all these costs goes back to the consumer” through what they eventually have to pay for the vehicle, he explains.
In the efforts to delay the impacts, some sellers and repair shops could turn to stocks at the inventory before the tariffs intervene, especially for parts that are most required. Analysts claim that many long expected the threat of cars and are already struggling with the impact of a new TrumpSteel and aluminum feesThis entered at the beginning of this month.
Storage, however, can only go so far. And for owners of small businesses can be spending money for many stocks at once, especially when TrumpAgain, re -tariff threatsRaise the questions about how long it will last.
If they will eventually be short -term, Caldwell said, “Do you really want to buy a lot of inventory that you have to sit and hold (until) for some time?”
What happens to my insurance premium?
Since the accidents concerning new parts will be reported increased repair costs, premiums will also be increased due to tariffs.
But it can be further into the future. Bob Passmore, vice -president of the personal line department in the US Association of Insurance in the field of real estate, expects consumers to see an impact on their insurance account for at least 12 to 18 months. This is because the increased price must hit the cost of demands, then they will be carried out after new rates are filed and approved.
However, the business association estimates that personal insurance costs could increase a total of 7 billion and $ 24 billion per year.
It was not immediately clear how large car insurance providers are preparing on the impact of these tariffs. AllstateState Farm, Geico and Progressive On Friday, he did not answer the Associated Press request immediately.
But even if it takes a long time to run down, these increments related to the tariff would arrive again because consumers have already faced increasing insurance costs. The Information Information Institute estimated that the average American automatic premiums increased by 14% and 12% in 2024 in 2023.
Mark Friedlander, the Chief Director of Relations with the Media, said through E -Mail that the non -profit research organization assumed 7% of the average increase in car insurance in 2025 at the beginning of the year – but this does not take into account the potential tariff impacts, which will drive even higher.
Increased costs resulting from tariffs cause “chain reaction for insurance”, Caldwell adds. “It is more of an increase in ownership costs rather than an increase in purchase.”
This story was originally listed on Fortune.com
