Tariffs could increase car repair costs

It could cost you more to repair your car.

Another round of auto tariffs went into effect Saturday with the latest impacting car parts.

Most car parts imported into the U.S. will now be hit with a 25% tariff. A CNN analysis found it could add an average of $4,000 per vehicle.

Many in the auto industry are worried it could rock the entire car market.

“We have to keep the vehicle affordable for Americans. That’s the balancing act,” Ford CEO Jim Farley said.

Even American-made boards have some foreign parts, and those parts coming from other countries will be subject to the import tax. 

Last year, the U.S. imported over $197 billion in automotive parts from other countries, according to the U.S. Automotive Aftermarket.

President Donald Trump is hoping the tariffs entice automakers to open more plants in the U.S., creating more American jobs.

“We have to look at whether these policies really change our competitors’ commitment to America,” Farley said.

General Motors says the tariffs could cost the company between $4-5 billion this year. But the CEO says she doesn’t expect those costs to fall on consumers in the near future. 

“Pricing is going to stay about at the same levels that it is,” General Motors CEO Mary Barra said.

This is the latest round of tariffs hitting the auto industry since Trump took office. Last month, the Trump Administration implemented a 25% tariff on all cars imported into the U.S.

And while consumers may not see prices go up right away, many experts warn that could change.

“The tariffs have yet to really come into effect and when they do, there’s going to be a very different economic mood,” Financial Times’ Edward Luce said.