Tariffs Expected to Drive Auto Costs Up $60 Billion

Recent tariffs imposed by President Trump are expected to significantly raise operating costs for businesses and consumer prices across various sectors, particularly in the automotive industry. A poll revealed that nearly half of business leaders anticipate at least a 15% increase in operating costs due to the tariffs, with many planning to pass these costs onto consumers. Specifically, car insurance premiums are projected to rise by approximately 8% by the end of 2025, influenced by increased prices for car parts and repairs. Experts warn that auto repair costs could rise by several hundred dollars as tariffs affect imported parts. Additionally, the tariffs are forecasted to cost major Japanese carmakers billions in revenue, prompting potential shifts in production strategies. The American Property Casualty Insurance Association has also highlighted that personal auto claims costs could increase by up to $60 billion as a direct consequence of these tariffs.