When the cost of repairing and replacing vehicles increases, these costs trickle down to insurance companies, who pass them on to policyholders. President-elect Trump has indicated that this tariff could be placed on all goods entering the U.S. from Mexico and Canada, impacting auto insurance costs in a few ways:

Trump has asserted tariffs will boost manufacturing and create jobs in the U.S. However, economists are skeptical and have warned tariffs would be highly inflationary for the U.S. economy and would impact businesses and consumers who would effectively pay them.