Rita Case, president and CEO of Rick Case Automotive, analyzes how automotive tariffs affect Americans with the “Craman Countdown.”
president Donald Trump’s Tariffs in the automotive industry are not just about increasing car prices. Industry experts say these taxes can also increase the cost of repairs.
Since Trump imposed a 25% tariff on all imported passenger cars in April, auto experts are worried that the costs of new vehicles across the industry will be a huge hit. The National Automobile Dealers Association said this year that it would “match customers with vehicles they can buy,” and that it was an ongoing challenge for new car and truck dealers in America.
However, those who currently own a car face problems as the vehicles on the road are older. Data released by S&P Global Mobility shows that the average age of US cars and light trucks reached a record high of 12.6 years last year.
Todd Campau, the aftermarket practice lead at S&P Global Mobility, is typically six to 14 years as more vehicles “enter the prime range of aftermarket service” due to growth in average age. More than 110 million vehicles are “in that sweet spot,” Kampau said.
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Car parts will be worn over time, so the older the car, the more repairs are required and the more efficient it is to continue to operate.
The mechanic works in the car. (Pia Bayer/Picture Alliance via Getty Images)
The administration is trying to boost domestic manufacturing and has settled on tariffs as an amendment. The government also plans to impose another 25% tariff on auto parts starting May 3. Initially, parts complying with the US-Mexico-Canada contract will be exempt, but the Department of Commerce plans to develop a plan to impose customs duties on non-US components. The agency is also expected to establish a process to impose customs duties on other auto parts by late June.
Major automatic components such as engines, transmissions, powertrain parts and electrical components are affected.
Mechanic and his tools (istock)
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“Many of the parts used to repair and maintain a vehicle, from brake pads and batteries to bumpers and sensors, are imported,” Cars.com Editor-in-Chief Jenni Newman told Fox Business. “If these parts are hit by tariffs, the supplier is expected to pass on extra costs to repair the store and dealer service department.”
Not only does this promote consumer repair bills, but it could also cause longer wait times if parts become more difficult to obtain or inventory is reduced, Newman said.
Used cars for sale (Justin Sullivan/Getty Images)
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“For current car owners, this is a wake-up call. Keeping your car is more important. Our advice is to be proactive,” Newman added.
Brian Moody, executive editor of Autotrader, agrees and tells the Fox business that it is important for consumers to recognize the same parts that are used to build new cars, and as it is the same as those used to repair cars on the road, car owners should make an appointment today if they may require maintenance.
