President Donald Trump’s tariffs on the auto industry aren’t just expected to push car prices higher. These levies could also drive up the cost of repairs, too, according to industry experts.
Ever since Trump imposed a 25% tariff in April on all imported passenger vehicles, car experts have been concerned that the cost of new vehicles across the industry would take a massive hit. The National Automobile Dealers Association issued concerns this year, saying that “matching customers with vehicles they can afford” has already “been a continuing challenge for America’s new car and truck dealers.”
However, people who currently own a car will face problems as vehicles on the road are getting older. The average age of cars and light trucks in the U.S. hit a record high of 12.6 years last year, according to data released by S&P Global Mobility.
Todd Campau, aftermarket practice lead at S&P Global Mobility, said with the growth in average age, more vehicles are now “entering the prime range for aftermarket service,” which is typically from six to 14 years. More than 110 million vehicles are “in that sweet spot,” Campau said.
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Car parts wear over time, so the older a car gets, the higher the chance it will require repairs to keep them running well and efficiently.
The administration is attempting to boost domestic manufacturing and has settled on tariffs as the fix. The administration also plans to impose a separate 25% tariff on auto parts starting on May 3. Initially, parts that comply with the United States-Mexico-Canada Agreement will be exempt, though the Commerce Department is expected to develop a plan to impose the tariff on non-U.S. components. The agency is also expected to establish a process for imposing tariffs on other auto parts by late June.
Key auto parts such as engines, transmissions, power-train parts and electrical components will be affected.
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“From brake pads and batteries to bumpers and sensors, many of the parts used to repair and maintain vehicles are imported,” Cars.com editor-in-chief Jenni Newman told FOX Business. “If those parts are hit with tariffs, suppliers are expected to pass on the extra cost to repair shops and dealership service departments.”
Not only would this drive up repair bills for consumers, but it could also cause longer wait times if parts become harder to get or inventory is scaled back, Newman said.
“For current car owners, this is a wake-up call: Maintaining your vehicle just got more important. Our advice is to be proactive,” Newman added.
Brian Moody, Autotrader’s executive editor, agreed, telling FOX Business that it’s important for consumers to realize the same parts used to build new cars are the same ones that are used to repair cars on the road, so car owners should look into making appointments today if they think they might need maintenance.
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