- The cost of servicing and repairing a vehicle could increase a lot as a result of new US tariffs.
- Imported auto parts are now subject to duties, which could also spike insurance premiums.
- Drivers who know their car needs work are being advised to act now and beat prices rises.
Hanging on to your existing car rather than trading in for a new one over the next 12 months seems like a simple way to avoid at least some of the impact of President Trump’s new tariffs. But the cost of servicing and repairing your existing vehicle could also be about to jump and drivers who already know they need a repair are being urged to move now to avoid inflated bills.
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Related: $8K Infiniti Owner Goes For Oil Change, Leaves With $5,000 Repair Quote
The new tariffs on goods imported to the US don’t only affect newly-built cars, but, starting May 3, the parts used to keep used ones on the road. Right now the tariffs have only recently been announced so parts retailers in the US can draw on an existing stock of components imported before the tariffs come into effect.
Inventory Cushion Won’t Last Long
But when that inventory dries up, the cost of bringing new parts in could be higher if they’re coming from, say, Mexico or Canada. Although Trump this week announced a 90-day pause on many tariffs, the reprieve did not included cars and car components, which are still subject to a 25 percent levy.
And if those parts are sourced from China, their prices could rocket as a result of Trump’s tit-for-tat tariff increases. More than 9.2 percent of all auto parts imported to the US in 2023 – worth $18 billion – came from China in 2023, according to figures quoted by Detroit News. America has come to rely heavily on its frenemy for its parts supply over the past 30 years, the proportion of components coming from the country having grown from just 1.2 percent in 1994.
Domestic Parts May Not Be Enough
Billions of dollars worth of parts are of course produced inside the US and won’t be subject to tariffs, but industry experts say many drivers who habitually delay having servicing and repair work done to save money could be better off getting the jobs done now to be sure of escaping any price rises.
“You could see essentially the cost [of a $500-800 brake job] going up between $150 to $200,” Skyler Chadwick, director of product consulting at Cox Automotive, told Detroit Free Press.
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Insurance Could Get More Expensive, Too
There’s another ripple effect to consider as drivers are also being warned that an increase in repair costs due to high parts prices could result in a rise in insurance premiums. Which makes sense, since insurance companies will have to pay more to have your vehicle fixes (or replaced, if it’s a write-off), so it’s only logical that they’ll increase drivers’ premiums to offset the costs.
Even if you’re not heading to the shop this week, you might still feel the sting in your monthly bill down the line.
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