Tariffs could add $24 billion to auto claims costs: APCIA

The Trump administration’s tariffs on Canada, China and Mexico will likely disrupt rebuilding efforts after recent catastrophes and increase the cost of auto replacement parts, adding up to $24 billion in personal auto claims costs, the American Property Casualty Insurance Association said late Tuesday.

In a statement, David A. Sampson, president and CEO of the Washington-based trade association, said the 25% tariffs on goods from Mexico and Canada and the 10% additional tariffs on goods from China that went into effect Tuesday could interrupt the supply of building materials to the United States. On Wednesday, the White House said automakers would be exempted from the tariffs for a month.

The tariffs “will likely disrupt vital reconstruction material supply-chains at a critical moment of rebuilding from recent catastrophes, including Hurricane Helene and Milton and the unprecedented California wildfires,” he said.

In addition, they will add to the cost of auto replacement parts, increasing repair costs “that are factored into auto insurance,” Mr. Sampson said.

“APCIA has estimated that annual personal auto insurance claims costs alone could rise by anywhere between $7 billion and $24 billion,” he said.