Parts Tariffs 2026: Which Cars Cost More to Maintain Now

Car repair costs were already up 15% year over year before May 3, per Consumer Price Index data. Now there's another layer on top of that.

The 25% tariff on imported auto parts took effect May 3. It covers 150 categories: engines, transmissions, powertrain components, electrical systems, bumpers, wipers, tires, and lubricants. Parts from Canada and Mexico that qualify under USMCA rules of origin are exempt. Parts from Japan, South Korea, Germany, and most other countries are subject to tariffs, with rates varying by origin and any applicable bilateral trade agreements.

The tariff doesn't affect a used car's sticker price. It affects what you pay the next time something breaks.

What This Actually Adds to a Repair Bill

The American Property Casualty Insurance Association (APCIA) estimated that a 25% tariff on imported parts would raise parts costs by 10 to 15% and push vehicle service contract loss costs up by 5 to 8%. Per Mitchell International, roughly 8.5 of the 13.5 parts replaced in an average repair estimate are potentially tariff-exposed. That's about $100 more per average repair claim at current parts prices.

That figure compounds. Insurance companies absorb higher repair costs by raising premiums. Per NBC News analysis, average auto insurance rates are projected to rise more than $300 per year by the end of 2026 as insurers reprice the higher parts replacement math.

None of this is reflected in current used car asking prices. A used Toyota RAV4 Hybrid and a used Ford F-150 may both list at $32,000. Their forward repair cost exposure is not the same.

Which Makes Have the Most Exposure

The gap comes down to where replacement parts are manufactured. USMCA-compliant parts from the US, Canada, and Mexico carry no tariff. Parts from Japan, Germany, and South Korea face tariffs that range from 15% to 25% depending on the bilateral trade agreement in effect.

Toyota is the most exposed major brand in the used car market. Toyota projected $9.1 billion in tariff-related costs for the fiscal year ending March 2026, per company filings. That figure reflects vehicle import tariffs, not parts tariffs, but it signals how deeply Japanese-origin content is woven into their US sales.

The Honda Accord is a counterexample. Assembled in Marysville, Ohio, with roughly 70% US and USMCA content, it sits closer to the domestic brands on repair exposure despite being a Japanese nameplate. Where a car was assembled, and where its powertrain specifically was built, matters more than the badge on the hood.

Why the Powertrain Is the Critical Variable

Engines and transmissions are the most expensive repair items. They're also the parts most likely to have a specific national origin. A transmission replacement can run $3,000 to $8,000 in parts alone. At 15-25% tariff exposure on the parts themselves, that's $450 to $2,000 in tariff-driven cost on a single repair.

Routine maintenance parts (filters, brakes, brake pads, belts) are more globally distributed and more likely to have USMCA-compliant alternatives available from the domestic aftermarket. The tariff impact on routine maintenance is lower and more substitutable. The impact on engine and transmission work is direct and harder to avoid.

What This Changes When Buying Used

Two cars at the same price don't have the same five-year ownership cost anymore. That's always been true to some extent due to reliability differences. The parts tariff adds a layer of geographic origin exposure on top of that.

A used car that's likely to need a major drivetrain repair in the next three years has a different cost profile today than it had in 2025. Heavily imported powertrain components now carry a 15-25% price premium on replacement.

Checking a vehicle's assembly plant and powertrain origin is a concrete step. The NHTSA VIN decoder shows assembly country. For powertrain specifics, manufacturer parts catalogs and dealer service departments can tell you where replacement engines and transmissions originate. It's a five-minute lookup that could factor into a multi-thousand-dollar decision.

Do parts tariffs affect used cars, not just new ones? Yes. Tariffs apply when a part is imported into the US, regardless of whether it's going into a new car on an assembly line or a used car at a repair shop. If your 2022 RAV4 Hybrid needs a replacement transmission sourced from Japan, that part carries the same tariff exposure as a transmission ordered for a brand-new vehicle.

Which used cars have the lowest repair tariff exposure? US-assembled trucks from Ford, GM, and Stellantis using predominantly USMCA-compliant parts have the lowest exposure. The Ford F-150 (Dearborn and Kansas City plants), Chevy Silverado, and Ram 1500 benefit from deep domestic parts supply chains. The Honda Accord (Marysville, Ohio) is a notable import-brand exception with relatively low tariff exposure.

Will auto insurance rates go up because of parts tariffs? Yes. Insurance companies price premiums based on expected repair costs. Per NBC News analysis, average auto insurance rates are projected to rise more than $300 per year by the end of 2026 as insurers reprice tariff-exposed parts replacement costs into their models.

If you're shortlisting used cars, the price you see today isn't the price you'll pay over three years. CarScout's market pages show you actual transaction data by make, model, and year, so you can compare what cars are selling for before factoring in what they'll cost to keep running.