Trump's auto tariffs could make owning a car more expensive. Here's why

Apnews - Mar 28th, 2025

President Donald Trump's announcement of a 25% tariff on auto imports is poised to increase the costs of owning and maintaining vehicles in the U.S. This move, set to start on April 3, is expected to raise the price of imported cars by thousands of dollars. Furthermore, repairs for vehicles using foreign-made parts will become more expensive, consequently driving up insurance premiums. While the White House argues that these tariffs will promote domestic manufacturing and generate $100 billion annually, economists warn of significant disruptions to the auto industry's global supply chain. Dealerships and repair shops are likely to pass on these increased costs to consumers, resulting in higher expenses for vehicle maintenance and repairs.

The tariffs, targeting crucial components like engines and transmissions, have already begun impacting businesses. Auto repair shop owners, like Desiree Hill of Crown’s Corner in Georgia, report difficulties in obtaining necessary parts due to the new tariffs. This has forced some to consider raising customer prices to offset their losses. Additionally, the tariffs are expected to affect the used car market, as dealerships face higher costs for servicing vehicles before resale. Insurance premiums are also projected to rise, with claims costs potentially increasing by up to $24 billion annually. Overall, these tariffs could exacerbate existing trends of rising auto repair and insurance costs, placing further financial strain on U.S. consumers.

Donald Trump Insurance Premiums Auto Industry Auto Tariffs Car Repair Costs Global Supply Chain Jessica Caldwell Skyler Chadwick Desiree Hill American Property Casualty Insurance Association

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RATING

7.8

Fair Story

Consider it well-founded

The article provides a comprehensive overview of the potential impacts of the 25% tariffs on auto imports, with a strong focus on the expected increase in car prices, repair costs, and insurance premiums. It effectively uses quotes from industry experts and stakeholders to add depth and credibility to the narrative. The article is well-structured, clear, and timely, addressing a topic of significant public interest.

However, there are areas where the article could be improved. While it presents a balanced view of the potential impacts, it could benefit from more perspectives from policymakers or government officials. Additionally, certain claims, such as the expected revenue from the tariffs, would benefit from more detailed sourcing and evidence. Despite these limitations, the article remains a valuable resource for readers seeking to understand the implications of the tariffs on their personal finances and the broader economy.

Overall, the article is informative and engaging, with a strong focus on the financial implications of the tariffs for consumers. It raises awareness of the potential consequences and provides valuable insights into the challenges facing the auto industry and consumers alike.

Accuracy

The article accurately reports on the 25% tariffs on auto imports and their expected impact on vehicle costs, repairs, and insurance premiums. The claim that the tariffs will raise the average cost of imported cars by thousands of dollars is supported by industry estimates, which suggest increases ranging from $3,000 to $4,000 per vehicle. Additionally, the article correctly identifies the potential for increased repair costs and insurance premiums due to higher parts prices.

However, some claims require further verification. For example, the article mentions the White House's assertion that the tariffs will generate $100 billion annually and boost domestic manufacturing, but it does not provide specific evidence or sources to support this claim. Furthermore, the potential disruptions to the global supply chain and their precise effects on different countries are not detailed.

Overall, the article provides a well-rounded and factual overview of the situation, but certain claims could benefit from additional sourcing or clarification.

Balance

The article presents a balanced view of the potential impacts of the auto tariffs, highlighting both the White House's perspective on fostering domestic manufacturing and the concerns of economists and industry experts about supply chain disruptions. The inclusion of quotes from various stakeholders, such as auto repair shop owners and economists, adds depth to the narrative.

However, the article could improve by providing more perspectives from policymakers or government officials who support the tariffs, as well as those who oppose them. This would offer a more comprehensive understanding of the motivations behind the policy and the potential counterarguments.

Overall, the article does a reasonable job of presenting multiple viewpoints, but there is room for a broader range of perspectives to enhance balance.

Clarity

The article is well-structured and clearly communicates the potential impacts of the auto tariffs. The use of subheadings, such as "How will tariffs affect my next car repair?" and "What will happen to my insurance premiums?", helps organize the information and makes it easy for readers to follow the narrative.

The language is straightforward and accessible, avoiding overly technical jargon while still conveying the complexities of the issue. The inclusion of quotes from industry experts and stakeholders adds clarity to the discussion by providing concrete examples and perspectives.

Overall, the article is clear and easy to understand, with a logical flow of information that enhances reader comprehension.

Source quality

The article cites credible sources, including industry experts like Jessica Caldwell from Edmunds and representatives from the American Property Casualty Insurance Association. These sources add authority to the claims made about the impact of the tariffs on car prices, repairs, and insurance premiums.

While the article includes a variety of voices, such as auto repair shop owners and industry analysts, it would benefit from more direct quotes or statements from government officials or policymakers involved in the tariff decision. This would strengthen the article's authority and provide a more comprehensive view of the issue.

Overall, the article's source quality is strong, but it could be improved with additional authoritative voices from the policy-making side.

Transparency

The article provides a clear overview of the potential impacts of the auto tariffs, but it could benefit from more transparency regarding the sources of certain claims. For example, the assertion that the tariffs will raise $100 billion annually lacks specific sourcing or evidence. Providing more detailed explanations of how these figures were calculated would enhance transparency.

Additionally, while the article cites industry experts and analysts, it does not always clarify the methodology behind their predictions or estimates. Offering more context on how these conclusions were reached would improve the article's transparency.

Overall, the article is relatively transparent, but greater detail on the basis of certain claims and methodologies would strengthen this dimension.