Should I buy now or wait.. and what about repairs? What Trumps car tariffs mean for YOU

Even if youre not in the market for a new car, President Donald Trumps 25 percent tariffs on auto imports could make owning one more expensive.

The new taxes, which are set to begin April 3 and expand in the following weeks, are estimated to raise the average cost of an imported vehicle car by thousands of dollars, the Associated Press reported.

 Imported cars, SUVs and trucks already in the country - or arriving before next week - will not be subject to the Trump administrations tariffs, however, tariffs will start to have a costly affect on new-car buyers within months.

Vehicle prices could rise 11 to 12 percent to offset tariff duties, on average, the Wall Street Journal reported, as automakers and parts manufacturers can only absorb some of the added costs, likely to passing a portion of the increases onto the consumer.

The impact will be really huge and very disruptive, Sigrid de Vries, director general of the European Automobile Manufacturers Association, said. 

Vries and others critics say American car shoppers will also be worse off, as tariffs will likely only push auto industry prices higher.

Repairs for vehicles that currently use foreign-made parts are also expected to get pricier under the newly installed foreign tax plan. 

If you are bringing your car to get repaired, chances are, its going to have a part that comes from another country, Jessica Caldwell, head of insights at auto-buying resource Edmunds, said. 

Imported cars, SUVs and trucks already in the country - or arriving before next week - will not be subject to the Trump administrations newly installed tariffs, however, the taxes will start to have a costly affect on new-car buyers within months

Vehicle prices could rise 11 to 12 percent to offset tariff duties, on average, the Wall Street Journal reported, as automakers and parts manufacturers can only absorb some of the added costs, likely to passing a portion of the increases onto the consumer. Pictured: US President Donald Trump speaks in the White House on March 28, 2025

That price that you pay is likely going to be directly affected by the increase (from these tariffs).

Dealerships and car repair shops will likely have little choice but to raise prices, leading drivers across the country to pay more for everyday maintenance.

Trumps Wednesday proclamation on auto tariffs points specifically to engines, transmissions, powertrain parts and electrical components which covers a lot of repairs as is, Caldwell noted.

While automakers may develop new pricing strategies for new vehicles impacted by tariffs, Caldwell expects they will to be less likely to absorb the costs of individual parts, leaving consumers with the bill more imminently.

Much of the car repair market has heavily relied on imports, particularly from Americas biggest trading partners. 

According to February numbers from the American Property Casualty Insurance Association, a trade group that represents home, auto and business insurers, about 6 in every 10 auto replacement parts used in US auto shop repairs are imported from Mexico, Canada and China.

You cant walk into a dealership today and not see a United Nations of parts, Skyler Chadwick, director of Product Consulting at Cox Automotive, told the Associated Press. 

But, sourcing and supply varies between each servicer, Chadwick added, making it all the more complex to nail down when exactly prices will rise after these tariffs take effect.

Car repair prices have already been on the rise for years, with analysts pointing both to growing labor costs and more expensive components needed for vehicles with advanced technology.

While automakers may develop new pricing strategies for new vehicles impacted by tariffs, experts say they will to be less likely to absorb the costs of individual parts, leaving consumers with the bill more imminently

Edward Salamy, executive director of the Automotive Body Parts Association, believes car companies have been trying to gain a monopoly to limit remedies to their own parts or processes, reducing options for consumers.

Tariffs, he said, will just exacerbate the issue: Many of these distributors will have no choice but to raise their list price.

As for insuring your vehicle, because accidents involving new parts will see increased costs for repairs, insurance premiums will also likely rise due to Trumps tariffs.

Department vice president of personal lines at the American Property Casualty Insurance Association, Bob Passmore, expects consumers to see an impact on their insurance bill in 12 to 18 months at a minimum. 

Passmore says increased prices have to hit claims costs, then be implemented after new rates are filed and approved, which will take time, sending the price hike further into the future.

Still, the trade association has estimated that personal auto insurance claims costs alone could rise a total of between $7 billion and $24 billion annually.

It wasnt immediately clear how large providers of auto insurance were preparing for the impacts of these tariffs, however. 

But even if it takes long to trickle down, these tariff-related hikes would again arrive as consumers have already faced rising insurance costs. 

The Insurance Information Institute estimated average US auto premiums increased 14 percent in 2023 and 12 percent in 2024.

Mark Friedlander, the institutes senior director of media relations, said that the research trade nonprofit projected a 7 percent average premium increase for auto insurance across the US in 2025 at the start of the year - but that didnt account for potential tariff impacts, which he believes will drive them even higher.

Increased costs spanning from tariffs cause a chain reaction for insurance, Caldwell added. 

This is a total ownership cost increase, rather than just a purchase increase.