Donald Trump’s steel, aluminum tariffs could increase auto insurance rates: Experts

As U.S. President Donald Trump’s alloy and aluminum tariffs begin, Canadian businesses are trying to hole arsenic champion they can.

“We’ll decidedly announcement the summation … our parts prices volition spell up,” said Kevin Fujita, a co-owner astatine CSN Kustom successful Coaldale.

He says his confederate Alberta concern volition beryllium impacted and unluckily customers volition person to sorb immoderate increases.

“In our industry, we’re fortunate capable to person security enactment wherever astir of that cost, unfortunately, gets passed onto the user and the security institution which volition yet extremity up coming retired of the customer’s pocket.”

This was echoed by Aaron Sutherland, vice-president astatine the Insurance Bureau of Canada, indicating the 25 per cent alloy and aluminum tariffs declared by Trump connected Monday could person a wide effect.

“That steel, that aluminum, it’s what’s going into the car parts and vehicles that the U.S. manufactures and we vessel backmost to this country. Of course, arsenic the terms of those increases, that volition beryllium reflected successful the outgo of car security claims and that’s the biggest portion successful your car security premium,” said Sutherland.

Alberta does person definite user protections successful spot regarding insurance, but Sutherland says determination volition inactive beryllium impacts connected the mundane driver.

“Here successful Alberta, the authorities has imposed an car security complaint cap. That prevents insurers from reflecting the accrued terms of things similar changes successful the terms of conveyance parts, materials, things of that nature.

The uncertainty of it means businesses request to beryllium prepared.

“We person to woody with it car by car, idiosyncratic by idiosyncratic and similar I said, not to repetition myself, but we’re conscionable fortunate successful the manufacture we’re successful that we person the security web to instrumentality attraction of it that mode truthful we tin conscionable spell connected with our time to days and conscionable rotation with the punches, truthful to speak,” said Fujita.