Even if you’re not in the market for a new car, U.S. President Donald Trump’s 25% tariffs on auto imports could make owning one more expensive.
The new taxes, which are set to begin April 3 and expand in the following weeks, are estimated to raise the average cost of a car imported from another country by thousands of dollars. But repairs for vehicles that currently use foreign-made parts are also expected to get pricier — and, as a result, hike insurance costs farther down the road.
While the White House says these tariffs will foster domestic manufacturing and raise $100 billion in revenue annually, economists stress that straining the auto industry’s global supply chain brings significant disruptions. Dealerships and car repair shops will likely have little choice but to raise prices — leading drivers across the country to pay more for everyday maintenance.
Here’s what you need to know.
How will tariffs affect my next car repair?
It depends on what you need fixed and where you go in to get your car serviced. But some industry analysts warn that drivers could see costs jump as early as the coming weeks or months.
“If you are bringing your car to get repaired, chances are, it’s going to have a part that comes from another country,” said Jessica Caldwell, head of insights at auto-buying resource Edmunds. “That price that you pay is likely going to be directly affected by the increase (from these tariffs).”
Trump’s Wednesday proclamation on auto tariffs points specifically to engines, transmissions, powertrain parts and electrical components. That covers a lot of repairs as is, Caldwell notes, and the administration has also signaled the possibility of future expansion.
And while automakers may develop new pricing strategies for new vehicles impacted by tariffs, Caldwell expects they will to be less likely to absorb the costs of individual parts — leaving consumers with the bill perhaps more imminently.
Much of the car repair market has heavily relied on imports, particularly from America’s biggest trading partners. According to February numbers from the American Property Casualty Insurance Association, a trade group that represents home, auto and business insurers, about 6 in every 10 auto replacement parts used in U.S. auto shop repairs are imported from Mexico, Canada and China.
“You can’t walk into a dealership today and not see a United Nations of parts,” said Skyler Chadwick, director of Product Consulting at Cox Automotive. But sourcing and supply varies between each servicer, he adds, making it all the more complex to nail down when exactly prices will rise after these tariffs take effect.
Desiree Hill, owner of Crown’s Corner, an auto repair and mechanics shop in Conyers, Georgia, says the auto tariffs were already hurting her business. She was working on repairing a vintage 1960 Opel Rekord car and ordered a part from Germany, but the manufacturer canceled the order due to the tariffs.
