Proposed Tariffs Expected to Raise Auto Parts, Insurance Costs

Dealership service departments are preparing for potential increases in parts costs due to proposed tariffs of up to 25% on imported auto parts from Canada and Mexico, effective April 2. Industry experts predict that parts prices could rise significantly, with some estimating increases of up to 15%. This situation is compounded by existing tariffs on Chinese parts, which have already increased to 20%. Additionally, the national average cost of full-coverage car insurance may rise by approximately 8% as a result of these tariffs, since they affect the cost of auto parts which influence insurance rates. Analysts suggest that consumers may not fully grasp how tariffs will impact the prices of goods and services, including auto insurance. Overall, these tariffs will likely have a cascading effect on the automotive industry and related services, heightening costs for consumers.