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 prepared to respond to US trade tariffs if President Donald Trump follows through on his threats immediately after his inauguration, Reuters reports. If Trump proceeds with his threats, it could severely impact the economy,