Summary
- Rental car fleets can shrink because companies last longer and lead to older cars and higher rental prices.
- Carpooling is exposed to increasing vehicle costs reduce the availability of the drivers and increase the tariffs.
- The insurance premiums increase because the tariffs increase the costs for imported auto parts that are required for repairs.
- The used car prices are expected to rise and the chip deficiency -ära repeated, since buyers avoid expensive new cars.
- Fleet operators and delivery services could address the costs, especially for vans such as the RAM Promaster built in Mexico.
When we talk about tariffs on cars, most people jump directly to the sticker shock on loosely the dealers. But what is often overlooked is how connected the US car industry is really. Even a vehicle that is gathered on the American soil, for example, a Ford F-150 supports thousands of parts, many of which come from over two dozen countries, including Mexico, Canada, Romania and South Korea. This means that Trump’s 25% tariff for imported cars and parts would not only hit foreign brands. It would Ripple by American vehicles and the entire North American auto industry.
And this ripple doesn’t stop in the car dealership. From carpooling to rental fleets to vehicle insurance to used vehicles, the costs of these tariffs are likely to influence the lives of everyday drivers. Let’s take a look at which parts of the car economy feel the heat with Trump’s new tariffs and why she is closer to home than you think.
Car rental: higher costs, older fleets
The car rental industry runs with volume: purchasing volume, volume of fleet sales and the volume of the bookings. Companies such as Hertz, Avis and Enterprise regularly refresh their fleets in order to maintain reliability and keep resale values high. However, if the tariffs increase the costs of new vehicles, rental companies may have to rethink this strategy.
Instead of buying new cars in large quantities, the rental companies could stick to vehicles longer. This means that older cars on the property, more frequent maintenance requirements and possibly more customer complaints. In order to compensate for the higher acquisition costs, rental prices could also increase, especially at airports and tourist centers, where demand is always strong.
Ultimately, travelers may pay more for fewer (older cars at higher prices), thanks to a wavity that started with tariffs on a brake pad from Canada or a transmission from Mexico.
Carpooling: Uber and Lyft could take a hit
For many Uber- and Lyft drivers, the cost of the vehicle is their biggest investment. Customs that increase the prices for new and used vehicles make it difficult for drivers to get in or stay in the ride.
Some drivers rent or rent their vehicles via programs such as Uber’s vehicle market. Higher vehicle prices mean that these rental programs are also more expensive. This could reduce the offer of available drivers and if the supply decreases, do you advise what is increasing? Tariffs.
There is also a long-tailed effect here. Higher car prices could encourage drivers to keep older vehicles longer on the street, which could affect the entire driving experience. If this five-star ride feels more like a three-star pendulum traffic, don’t be surprised, it could also drive the wave of tariffs.
Motor insurance insurance: tariffs = more expensive repairs = higher premiums
It is easy to assume that tariffs only influence the price for new cars, but also what happens after you have bought one. According to industry experts, tariffs in auto parts increase the costs for vehicle repairs. This in turn increases insurance premiums higher.
In a report recently followed by CBS News, a repair workshop in Chicago followed in which Mechanics explained how The cost of a typical 200 dollar fender could increase due to new tariffs to 250 US dollars. “If the parts rise, the repair calculation increases,” said a mechanic. “And if the repair calculation increases, your premiums will do it too.”
Even American car drivers are not immune. As a rule, your guideline covers damage to your car, but also for the other driver’s car. And if this other car is filled with parts with tariff switches, the costs of your insurer will increase regardless of this. Insurance companies forecast an increase in premiums of 7%before these new tariffs occurred. So we can expect promoted consumers to continue shopping and search for offers from providers such as Panda 7 Insurance who offer house and auto bundle.
In short, tariffs can mean a larger bill for your next renewal today, even if you drive a badge “Made in the USA”.
Automatic repairs and parts: The business may be booming, but at a price
If new car sales slowed down due to higher prices, more people will hold on to their current trips. These are usually good news for independent mechanics and chain repair workshops that benefit from increased demand for maintenance and repair work.
But there is a catch. Many spare parts, such as alternators, sensors, control weapons and even brake pads, are imported from countries that are now exposed to tariffs. This means that parts are becoming more expensive. And these higher prices could be passed on to you, the customer.
So yes, your local garage may be busy than ever, but in the end you could pay more for routine repairs. An cross -age job of 400 US dollars can be 500 US dollars. This is inflation through international politics – with a wrench.
Used car market: déjà vu again from the front
Do you remember when the used car prices rose during the pandemic? This tip was not just about demand, it was also about supplychain problems, especially about the chip deficiency, which crippled the production of new cars. When fewer new cars rolled off the assembly lines, the buyers turned to the used market and sent the prices of Himmelhoch. We could see that the story was repeated.
If tariffs increase the price for new cars, buyers will look at the used market again. This shift in demand could increase the prices across the board, from slightly used 2023 models to ten years of limousine.
So if you thought that the purchase of purchase was a safe way to save, think about it again. A 2018 Honda Civic with 60,000 miles may not be the business that it used to be, especially when retailers try to cover the used inventory to close gaps in expensive new models.
Dealer: between a rock and a hard tariff
Traders sit at the interface of manufacturers and consumers. If the prices for the new cars rise due to tariffs, retailers may have difficulty moving the inventory, especially if consumers start to keep larger purchases.
This leads to a difficult balancing act. Dealers may offer more aggressive financing or incentives, but those who come from their margins. In the meantime, floor plans (the interest traders pay to keep cars on the property) can quickly accumulate.
Some dealers can adapt by focusing more on used inventory or service departments. Others could be exposed to layoffs or closures, especially in areas with less demand or a limited variety of brands.
Customs not only increase prices, but also change how and where Americans buy their cars.
Fleet and delivery service: Van Life becomes more expensive
Companies that rely on fleet vehicles such as Fedex, Amazon suppliers or merchant doctors feel the pinch quickly. These companies often buy dozens of or even hundreds of vehicles at the same time.
One example is the RAM Promaster, a popular van for commercial use. Each Promaster is built in the Saltillo van building group work in Mexico. After the tariffs came into force, the price for importing these work horses could jump overnight.
This increase is passed on. The delivery costs could increase, surcharges can occur on their Amazon Prime order, and smaller companies could put the company back or delay the brisk upgrades. If your plumber or HLK technology appears in a worn van, you know why.
The hidden costs of a tariff war
While the headlights can shine on the price for new cars, the real effects of tariffs spread further. Regardless of whether you rent cars, for Uber, are used or insured, you are part of the car ecosystem, and tariffs can touch any corner. As a manufacturer, insurer and everyday drivers, the more expensive reality, the sticker shock may not end at the car dealership. It could start there.
