One year after President Trump imposed sweeping tariffs on some imported auto parts, consumers are continuing to feel the pinch, shelling out more for repairs and part replacements than they did a year ago.
In May last year, the White House imposed a 25% tariff on some key foreign-made auto parts — a levy that is still in effect. The White House hoped the tariffs would spur auto companies to produce more cars domestically. But even American-made cars source many of their parts from other countries.
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Auto mechanic Jeff Landrum spoke with Scripps News last year.
"We've got filters, we've got wiper blades, we've got some brake parts. Definitely tires. A lot of things that we use on a daily basis are from out of the country."
New data released Tuesday shows the price of car parts and equipment was up 3.8% in April compared to a year ago. A new analysis from Anderson Economic Group found importers paid more than $3.5 billion in tariffs on auto parts last year from Canada and Mexico alone. Prior to the tariff, many parts were exempt.
The cost of vehicle maintenance and repair is up more than 5% from a year ago.
While some American automakers have announced plans to reshore some of their production, many car parts likely never will be made in the U.S., said Sam Fiorani, vice president at research firm Auto Forecast Solutions.
"The cost of repairs has certainly gone up," Fiorani said. "Because the automotive parts suppliers have become so specialized, it makes more sense to make certain parts in other countries."
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"So bringing it to the U.S. will either not happen or it'll cost a lot of money to do it," he added.
Fiorani said prices will eventually level off — but are unlikely to return to pre-tariff levels.
"The new tariffs will reposition the pricing and consumers will just have to understand that's the new normal," Fiorani said.
Separately, President Trump said he will increase tariffs on imported trucks and cars from the European Union if the EU does not agree to a trade deal by July 4.
