{"id":15644,"date":"2025-02-11T01:08:44","date_gmt":"2025-02-11T01:08:44","guid":{"rendered":"http:\/\/torontotribune.ca\/index.php\/2025\/02\/11\/donald-trumps-steel-aluminum-tariffs-could-increase-auto-insurance-rates-experts\/"},"modified":"2025-02-11T01:08:44","modified_gmt":"2025-02-11T01:08:44","slug":"donald-trumps-steel-aluminum-tariffs-could-increase-auto-insurance-rates-experts","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/11\/donald-trumps-steel-aluminum-tariffs-could-increase-auto-insurance-rates-experts\/","title":{"rendered":"Donald Trump\u2019s steel, aluminum tariffs could increase auto insurance rates: Experts"},"content":{"rendered":"


\n<\/p>\n

\n

As U.S. President Donald Trump\u2019s steel and aluminum tariffs<\/a> begin, Canadian businesses are trying to prepare as best they can.<\/p>\n

<\/p>\n

\u201cWe\u2019ll definitely notice the increase \u2026 our parts prices will go up,\u201d said Kevin Fujita, a co-owner at CSN Kustom in Coaldale.<\/p>\n

He says his southern Alberta business will be impacted and unfortunately customers will have to absorb any increases.<\/p>\n

\u201cIn our industry, we\u2019re lucky enough to have insurance work where most of that cost, unfortunately, gets passed onto the consumer and the insurance company which will ultimately end up coming out of the customer\u2019s pocket.\u201d<\/p>\n

This was echoed by Aaron Sutherland, vice-president at the Insurance Bureau of Canada, indicating the 25 per cent steel and aluminum tariffs declared by Trump on Monday could have a widespread effect.<\/p>\n

\n
\n\t\t\t\t\t\"For\n\t\t\t\t<\/div>\n
\n

Get breaking National news<\/h3>\n

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

\u201cThat steel, that aluminum, it\u2019s what\u2019s going into the auto parts and vehicles that the U.S. manufactures and we ship back to this country. Of course, as the price of those increases, that will be reflected in the cost of auto insurance claims and that\u2019s the biggest piece in your auto insurance premium,\u201d said Sutherland.<\/p>\n

\n

Story continues below advertisement<\/p>\n<\/p><\/div>\n

\n
\n
\n

\u201cSo, any kind of trade war, even something that only applies to steel and aluminum, is extremely concerning.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n<\/blockquote>\n

Alberta does have certain consumer protections in place regarding insurance, but Sutherland says there will still be impacts on the everyday driver.<\/p>\n

\u201cHere in Alberta, the government has imposed an auto insurance rate cap. That prevents insurers from reflecting the increased price of things like changes in the price of vehicle parts, materials, things of that nature.<\/p>\n

\n
\n
\n

\u201cThat shields consumers from some of the direct impacts here, but what it does is force auto insurers to scale back their offerings because if they can\u2019t accurately price for it, they\u2019re not able to sell it.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n<\/blockquote>\n

The uncertainty of it means businesses need to be prepared.<\/p>\n

\u201cWe have to deal with it car by car, person by person and like I said, not to repeat myself, but we\u2019re just lucky in the industry we\u2019re in that we have the insurance network to take care of it that way so we can just go on with our day to days and just roll with the punches, so to speak,\u201d said Fujita.<\/p>\n