Auto part tariffs hit millions of dollars worth of goods coming into Missouri
COLUMBIA, Mo. (KMIZ)
Tariffs of 25% went into effect Saturday on a slew of auto-related materials, including the estimated $155 million worth of car parts imported into Missouri from Canada each year.
President Donald Trump signed a proclamation on March 26 to impose a 25% tariff on imports of automobiles and certain automobile parts.
Data from Connect2Canada says Missouri purchased $413 million worth of engines and turbines from Canada in 2024, making them the top Missouri import last year. Missouri also imports hundreds of millions of dollars worth of plastics, metals and other materials used in vehicles.
The tariff applies to imported passenger vehicles, including sedans, SUVs, crossovers, minivans, cargo vans and light trucks, the White House says. Key automobile parts such as engines, transmissions, powertrain parts and electrical components will also carry the 25% tariff.
Trump's tariffs on imported cars took effect on April 3. Tariffs on Canadian auto imports could significantly impact Missouri, according to previous reporting, as Canada is Missouri's largest trade partner.
The previous auto tariffs did not affect U.S.-made cars. But with most auto part imports now under a 25% import tax, the industry could be hit by high costs. While U.S.-made vehicles are fully sourced and produced in America, no car from a U.S. plant is built without at least some imported parts.
Americans bought about 16 million cars, SUVs and light trucks in 2024, according to the White House. 50% of those vehicles (8 million) were imports. And of the 16 million cars purchased, only 25% of the vehicle content can be categorized as Made in America.
Auto part tariffs could significantly increase the cost of assembly in the U.S. and hurt manufacturers. The White House says it would refund automakers temporarily to help offset part of the tariffs.
"The automobile manufacturer may apply for an import adjustment offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States from April 3, 2025, through April 30, 2026," the proclamation states.
But a CNN analysis found the added costs of tariffs could still come to an average of $4,000 per vehicle even with that refund.
This cost could eventually affect the American consumer.
Auto tariffs could lead to price increases on new cars, used cars, maintenance and repairs, and even insurance premiums if a car involved in an accident has new parts. This could also further reduce the availability of affordable vehicles.
The total cost to own a operate a new vehicle in 2024 was about $1,025 a month, according to a report from the American Automobile Association. That was up more than $200 a month from 2021.
