According to a report by Reuters on July 19th, the US government threatened to increase tariffs on imported auto parts, which the highest will up to 25%. The US auto industry said that this move will have potential impact on consumers, including rising maintenance costs and insurance premiums, and even the chances of car theft will increase.
The Trump administration has begin the investigation that whether imported cars threaten national security. They threatens to increase tariffs on imported vehicles from the EU and other regions.
A car insurance group alliance said that a 25% increase in tariffs on imported car parts could increase personal car insurance costs by 2.7%, about $3.4 billion a year.
The US Department of Commerce will hold a hearing on the matter on the 19th.
The American Insurance Association, the National Mutual Insurance Company Association, and the American Property Insurance Association believe that consumers will bear almost all of the rising maintenance costs. The three insurance associations will jointly communicate this view to the Ministry of Commerce.
Insurance companies also say they may not be able to quickly get the replacement parts needed by policyholders, which will result in maintenance delay and costs rising. These insurance company associations also said: "Car theft cases may also increase because many of the stolen car parts will be sold."
