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Money Move

Auto Tariffs Are Not Just Raising Car Prices. They Are Raising the Cost of Keeping Your Car.

The 25% parts tariff is quietly inflating repair bills, insurance premiums, and total ownership costs for every car on the road.

By Mira·March 4, 2026·3 min read

TL;DR

25% tariffs on imported auto parts are adding $100 to $250 per repair, driving up insurance premiums, and could add $10,000 to $15,000 to total ownership costs over a decade.

Auto tariffs aren't just making new cars more expensive. They're making it more expensive to keep the car you already own.

Here's the part nobody's talking about: 25% tariffs on imported auto parts don't just hit dealerships. They hit every repair shop, every collision center, and every car owner who needs a replacement fender, a new alternator, or a set of brake pads.

The Sticker Shock Is Just the Start

The Yale Budget Lab estimates that 25% auto tariffs add roughly $6,400 to the average price of a new car. On a $48,000 vehicle, that's a 13.5% jump. For imported models, prices could climb as much as 31%.

But the bigger problem is downstream.

Your Repair Bill Just Got a Tariff Surcharge

About 44% of OEM collision parts sold in the U.S. are imported. Those parts now carry a 25% tariff, and repair shops aren't eating the cost. According to industry data tracked by CCC Intelligent Solutions and the Collision Industry Conference, the average repair order has already climbed roughly $100 due to existing tariffs. With expanded tariffs now in effect, that number could jump another $90 to $250 per repair.

Steel tariffs alone add about $93 per vehicle. Aluminum adds another $72. Parts prices rose over 6% in the second and third quarters of 2025 as tariff costs passed through the supply chain.

Some parts have seen prices more than double. A fender or hood that used to cost $400 from an overseas supplier can now run over $1,000 after duties.

The Ripple Effect Hits Insurance Too

Higher repair costs don't stay in the shop. They flow straight into insurance premiums. When it costs more to fix a car, insurers adjust. Ford and GM reported combined tariff-related cost impacts of $1 billion to $4.5 billion in 2025 alone, according to their earnings calls. Those costs are already shifting to consumers in 2026.

Nearly 39% of collision repair shops say tariffs have already disrupted their operations, and that number jumps to 74% for larger shops, based on surveys from the Society of Collision Repair Specialists.

Add it up over five to ten years of ownership, and tariffs could add $10,000 to $15,000 to your total cost of keeping a car on the road.

What You Can Do Right Now

Get ahead of repair costs. If your car needs body work or major maintenance, don't wait. Parts prices are still climbing as new tariff rounds take effect.

Shop your insurance. Premium increases tied to higher repair costs are rolling out now. If you haven't compared rates in the last six months, you're probably overpaying.

Think about total cost, not just sticker price. The $6,400 tariff premium on a new car gets all the headlines. But the real hit is the compounding cost of repairs, parts, and insurance over the years you own it.

Consider domestic-heavy vehicles. Cars with higher U.S. parts content face lower tariff exposure. Vehicles assembled in the U.S. with mostly domestic components sidestep the worst of the surcharge.

This isn't a one-time price bump. It's a structural shift in what it costs to own a car in America. And for the 280 million registered vehicles already on the road, there's no avoiding it.

Sources

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