Overview

• The tariffs are projected to raise the cost of new vehicles by an average of $3,000, with some estimates suggesting increases as high as $6,400 per car.
• Car insurance premiums nationwide are expected to rise by 8-13% by the end of 2025 due to higher costs for imported auto parts, which make up 32% of U.S. auto part imports.
• Repair costs are likely to climb as tariffs increase the price of key components like engines, transmissions, and electrical parts, further burdening consumers.
• The United Auto Workers union supports the tariffs for their potential to restore U.S. auto industry jobs, while foreign automakers warn of higher consumer costs and potential job losses.
• Analysts predict significant disruptions to global supply chains, with automakers facing costly adjustments to production and sourcing strategies.