Drivers warned to get cars serviced before tariffs. ‘Do not delay your repairs’
Higher vehicle repair costs, longer wait times for those repairs and higher car insurance rates are chief among things car owners should be concerned about as auto parts tariffs are set to go into effect, according to industry experts.
After placing a 25% import tariff on foreign-made vehicles in April, which remains in effect even after other tariffs were paused, President Donald Trump has said the same rate will apply to imported auto parts beginning May 3.
Barring exemptions or a pause, which Trump has hinted at, these tariffs could have significant financial implications for drivers trying to maintain their vehicles, even domestic cars and trucks.
‘Do not delay your repairs’
Skyler Chadwick, director of product consulting for Cox Automotive, the company behind brands like Autotrader and Kelley Blue Book, said most consumers don’t realize how many auto parts, even ones for domestic vehicles, are imported from other countries.
“Forty percent of the parts used for repairs are imported,” he said. “It’s a United Nations of parts, and tariffs are going to have a major effect.”
Auto parts come to the U.S. from all over, including Mexico, Canada, Asia and Europe, meaning costs could still rise even if certain nations negotiate tariff relief. And some parts made in America still use foreign materials, so there could be increased costs for those as well.
According to NBC News, the bulk of our rubber imports come from Thailand, Vietnam, Malaysia, Indonesia and Ivory Coast, which will impact production costs for U.S. tire manufacturers like Goodyear and Cooper.
With so much uncertainty, Chadwick’s advice is simple: “Do not delay your repairs.”
According to his estimates, if the 25% tariffs go into effect, the overall price for something as routine as brake replacement could increase by anywhere from 30% to 60% when you factor in labor costs.
Right now, a brake job costs about $500 per axle, on average. Using Chadwick’s figures, that could cost between $650 and $800 after May 3.
Because of inventory on hand at dealerships and repair shops, Chadwick believes consumers would start feeling the pinch of parts tariffs around the end of May or early June. At the same time, the rush to get vehicles repaired before prices go up could mean longer wait times for vehicle service and a shortage of parts, creating frustration for car owners.
What tariffs mean for Texas car insurance premiums
Of course, rising repair costs will hit the auto insurance industry as well. If a vehicle is in an accident, it could be more expensive to fix, and because of tariffs on car imports, it could also be more expensive to replace. That’s likely to drive up insurance premiums, which have already been high thanks to post-COVID inflation.
It’s hard to tell, though, just how much those premiums will increase, cautioned Daniel Armbruster, a spokesperson for AAA, which provides auto insurance, roadside assistance and other driver services.
“It’s really too soon to know what the long-term impacts of tariffs will be,” said Armbruster, noting that things are fluid.
Chadwick agreed. He said the conversation could change drastically between now and May 3.
“We’re all going to be waiting for that text message or tweet or whatever it may be from the president of the United States on what is really going to happen with the automotive parts sector,” he said.
U.S. automakers have urged the Trump administration to reconsider sweeping parts tariffs to give domestic manufacturers time to adjust. When reached for comment, a General Motors spokesperson referred the Star-Telegram to information released by the American Automotive Policy Council.
On April 16, the council referenced a Center for Automotive Research report that estimated parts tariffs would add more than $4,000 on average to the price of a new American-made vehicle. That same report said vehicles manufactured by the “Detroit 3” — Ford, General Motors and Stellantis, which makes brands like Chrysler, Dodge, Ram and Jeep — would cost nearly $5,000 more as a result of tariffs.
Chadwick reiterated that all areas of the automotive industry will be impacted if parts tariffs go into place, including used car dealers and retailers like AutoZone, Napa Auto Parts and O’Reilly Auto Parts.
So whether you’re in the market for a new vehicle or just trying to keep your existing one on the road this summer, it’s possible that your wallet is going to take a hit, adding to the myriad other ways in which tariffs could affect consumers.