The Reason Why Tariffs On Imported Car Parts Will Increase Auto Thefts

Industry News

Car prices aren't the only numbers that will probably increase for the worst.

If the US government gets its way regarding a 25 percent tariff on imported auto parts from Europe, then consumers will need to be prepared to pay extra for things other than cars themselves. According to Reuters, basic repairs, insurance premiums, and increased risk of theft would also likely increase as a result of tariffs. Is this something the Trump administration has taken into account? Who knows, but auto industry groups are already sounding the alarm bells and we should all pay attention.

For example, tariffs on imported auto parts could increase auto insurance premiums by 2.7 percent, or $3.4 billion annually. How come? The American Insurance Association and other insurance groups claim “The imposition of tariffs could likely lead to the filing of hundreds, if not thousands, of requests for rate increases by insurers with insurance regulators across all fifty states.”

Moreover, it may be more difficult for insurers to find suitable replacements parts for policyholders, resulting in further delays and additional costs. But what do tariffs and car thefts have in common? “Motor vehicle theft rates could rise, as many stolen vehicles are sold for their parts,” the groups added.

You Might Also Like
7 Surprising Cars With Ferrari Engines
7 Surprising Cars With Ferrari Engines
Remember When Genesis Was Still A Hyundai? It's Now Incredibly Cheap
Remember When Genesis Was Still A Hyundai? It's Now Incredibly Cheap

Fortunately, the Trump Administration has not enacted this threat of 25 percent tariffs just yet since the Commerce Department states it is still “collecting all the facts, and completing a careful analysis. While we aim to complete the investigation and report to the President within a couple months, no proposal for action has yet been made.”

Meanwhile, the Auto Care Association, which represents 150,000 manufactures, distributors, and auto parts sellers, estimates the cost of car ownership could increase by over $700 per year per household if tariffs are imposed. “The costs of maintaining a car is going to go up as is fixing or insuring it,” said Kristin Dziczek, an economist who spoke to Reuters. “But those costs are not going to go up as much as buying a new car” with added tariff costs.

Jaguar XE 300 Sport And XE SV Project 8 Create Modern Art

Two vastly different sports sedans that share a common thread.

All-New Revolutionary Mazda3 Teased Ahead Of LA Reveal

Along with its game-changing sparkless ignition engine.

WatchThe Extraordinary Nissan GT-R50 Being Built By Hand

It’s all about bending sheet metal the old-fashioned way.

Here's How Aerodynamics Make The Lamborghini Aventador SVJ So Much Faster

Take a behind the scenes look at this amazing system.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

5 Things You Need To Know About The 2019 BMW X5

After driving the car for the first time, here are our key takeaways.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Kim Jong-un Gets Classy With New Ride

So much for sanctions.

What's Hot

Related Cars

Starting MSRP
$60,700
Starting MSRP
$30,750
Starting MSRP
$130,000

Related Reviews

2019 Chevrolet Silverado 1500 First Look Review: A Truck For Everyone
First Look
14
2019 Chevrolet Silverado 1500 First Look Review: A Truck For Everyone
2019 Mercedes-Benz G-Class First Drive Review: Something Old, Something New
First Drive
1
2019 Mercedes-Benz G-Class First Drive Review: Something Old, Something New
2019 BMW X5 First Look Review: Fourth-Gen Model Gets Technical
First Look
8
2019 BMW X5 First Look Review: Fourth-Gen Model Gets Technical
2019 BMW X5 First Drive Review: Your New Go-Anywhere Luxury SUV Has Arrived
First Drive
27
2019 BMW X5 First Drive Review: Your New Go-Anywhere Luxury SUV Has Arrived
5 Things You Need To Know About The 2019 BMW X5
Test Drive
2
5 Things You Need To Know About The 2019 BMW X5