Not buying a new car? How Trump’s auto tariffs will hit current owners too

Experts say you don’t need to be in the market for a new car for Trump's auto tariffs to hit you. Existing car owners will feel the pinch too.

The North American car industry is reeling under U.S. President Donald Trump’s tariffs, and experts say it won’t just be those in the market for a new car feeling the hit.

Existing car owners will feel the pinch too.

According to the Canadian Chamber of Commerce, the auto tariffs, coupled with Trump’s tariffs on steel and aluminum, will raise the cost of insurance premiums and repairs for car owners in both Canada and the United States.

“The increase in car prices due to tariffs results in higher repair costs, which subsequently raises insurance premiums. Tariffs on steel and aluminum could further increase repairable claims costs by 1% to 2%,” a recent report by the chamber’s Business Development Lab said.

“As repair parts become more expensive and cars cost more to fix, these expenses will likely be passed on to consumers, resulting in higher premiums when policies are renewed.”

Daniel Ivans, insurance expert and broker with Rates.ca, said the portion of the insurance cost that deals with liability coverage or injury coverage will likely be unaffected.

However, he said a quarter of the average insurance premium goes towards covering physical damage to your vehicle.

This includes losses from collisions, accidents, theft, vandalism, hit and runs or fires. This portion of the premium, he said, will go up as tariffs increase the costs of parts.