Since the beginning of the U.S. presidential election last year, there has been endless discussion over tariffs proposed during Donald Trump’s 2024 campaign. His administration has outlined plans to implement tariffs on China, Canada, Mexico, and other countries—though these plans have rapidly changed with each week as different industry sectors voice various concerns.
In the meantime, the automotive industry has anxiously waited to see what will happen. While there would be obvious impacts to automotive manufacturing, many experts believe there will be ripple effects that independent repair shops will feel.
Here’s a concise breakdown of what the current state of tariffs is looking like, and—if implemented—what it will look like for repair shops across the country.
How Did We Get Here?
According to the Associated Press’ reporting, before Trump took office, he released plans for a 25% tariff on Canada and Mexico to be enforced via an executive order once he took office. On Jan. 20, 2025, he said that a 25% tariff on Canada and Mexico would take effect on Feb. 1.
February saw a lot of shifts and changes in tariff news. On Feb. 1, the President signed an executive order for an additional 10% tariff on Chinese imports, and a 25% tariff on imports from Mexico and Canada, effective Feb. 4.
However, two days later, the administration declared a 30-day pause on the proposed tariffs for Mexico and Canada, while the tariffs on China went into effect on Feb. 4.
The following week, the White House then announces plans to tax all steel imports at a minimum of 25%, as well as raising tariffs on aluminum from 10% to 25%, with Trump stating later that week that tariffs on countries such as India could be possible, as well.
Fast-forward into March: it’s been 30 days, and the tariffs on Canada and Mexico officially taken effect. The government also increased tariffs on Chinese imports to 20%. But, the next day, the White House said that automakers will be exempt from the Mexico and Canada tariffs for one month.
On March 12, tariffs on steel and aluminum imports rose to 25%. Nearly two weeks later, on March 24, it was then announced that new tariffs would be imposed on Venezuela, and that imports from any country buying oil or gas from Venezuela will be subject to a 25% tariff—though this is still pending, according to data from the Auto Care Association.
On March 26, AP reported that the White House would impose a 25% tariff on auto imports. It covers imports from all countries, with exceptions for U.S.-content under USMCA. Products that will be impacted by the tariff include passenger vehicles such as sedans, SUVs, crossovers, minivans, and cargo vans; light trucks; and auto parts such as engines, transmissions, powertrain parts, and electrical components.
Tariffs on passenger vehicles and light trucks will take effect on April 3. An exact date has yet to be announced for auto parts, but tariffs will kick in for them no later than May 3.
Implementing such tariffs is an effort to boost domestic manufacturing, but it’s left auto manufacturers scrambling to work around an established global supply chain. In just the past couple months, industries have been unsure of whether tariffs would happen, but with the current administration moving forward with implementing them, it raises one important question many shop owners have: how will these tariffs impact my operations, if at all?
It’s impossible to know with certainty what any outcome may be, but many analysts and industry experts have shared how automotive repair is likely to be impacted.
The Impact on Shops: What Are Experts Saying?
Experts predict that tariffs will increase prices of new vehicles, leading consumers to keep their existing vehicles longer, a Fortune report this month explains.
“U.S. consumers will likely hold on to their existing cars for longer, and may switch to buying used cars, so used-car prices will rise,” says Paul Donovan, chief economist at UBS Global Wealth Management.
Steve Birkett, consumer advocate and EV specialist from FindTheBestCarPrice.com, told Fortune that both vehicle replacement costs and repair expenses would increase because of tariffs.
Indeed, a substantially lower number of automotive parts are compliant with the United States-Mexico-Canada Agreement, making suppliers more susceptible to being hit by tariffs, per a report from CNBC.
Collin Shaw, president of the MEMA Original Equipment Suppliers association, affirmed this to CNBC, adding that the current supply chain lacks the profitability to absorb tariffs. Earlier this month, a survey conducted by MEMA found that 97% of smaller suppliers were concerned with the potential financial impacts of tariffs.
While the automotive supply chain has proven to be resilient, Shaw noted that abrupt policy changes are a big vulnerability for the industry. “What I’d say is very difficult, is the whipsaw back and forth. The notion that we can very easily bring these things back—it can be done. It takes time though,” says Shaw.
An increase in the price of parts would, naturally, lead to the cost of auto repairs rising, as Edmunds analyst Jessica Caldwell recently told Reuters. “Many vehicle parts are sourced globally, which would increase repair costs for car owners, and reconditioning costs for dealers,” says Caldwell.
Some members of the auto care industry have spoken out on how their businesses will be affected, too.
In February, ABR Houston put a press release out to inform its customers of how the tariffs could potentially impact operations. Their sentiments echoed that of most analysts, which is that the price of parts could inflate, and availability of parts may decline. Being a shop that specializes in European vehicles, businesses like ABR Houston are especially impacted by the tariffs.
The Auto Care Association has been a sounding alarm for what the tariffs could potentially bring, and has done a great job breaking down what the repair industry can expect. The organization stated that upfront tariff costs will impose significant financial strain on businesses. For small and medium-sized businesses, ACA warned this may lead to cash flow challenges, delayed payments, reduced capacity and inventory, and potentially having to scale back operations.
ACA has a list of the top product categories imported from Mexico, which includes certain ignition wire sets, seat parts, brake systems and components, gearboxes, catalytic converters, suspension shock absorbers and parts, spark-ignition reciprocating piston engines, and automotive air conditioning parts.
Top product categories imported from Canada are certain spark-ignition reciprocating piston engines, gearbox parts, suspension system parts, and clutch parts.
With cost of repair already being the top roadblock to consumers seeking automotive service, according to the 2025 Auto Care Factbook, a potential 25–100% increase in parts will likely result in more drivers postponing necessary service as well, ACA has noted.
Shop owners such as Sam Darwich, owner of Northwestern Auto Repair in Farmington Hills, Michigan, have agreed with this. Darwich told WXYZ-TV Channel 7 that parts in most vehicles he works on come from either China or Mexico, and is concerned that higher prices on those components will lead to problems being ignored. “You hear a squeak or squeal, (you say) OK you know what, I do need brakes, but I’m gonna push it another week or two,” says Darwich.
