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:

Donald Trump is promising to put import taxes back at the center of US economic policy during his second term as US president. The country heavily taxed imports for much of its history before largely abandoning the policy,

Canada’s foreign minister is warning Americans they will be paying a “Trump tariff tax” if President-elect Donald Trump follows through with a threat of imposing a 25% tariff on all Canadian goods.

Canada is ready to respond to tariffs from its top trade partner the United States on Monday if President-elect Donald Trump follows through on his threat to impose them, Foreign Minister Melanie Joly said on Friday.