Trade policy and insurance might seem unrelated, but broad tariffs significantly challenge insurers by increasing costs, fueling inflation, and boosting economic volatility. The new 2025 tariffs will affect imports from Canada, Mexico, and China. These tariffs mainly target cars and construction materials. As a result, the insurance sector must adapt quickly.

Here are the critical ways tariffs are impacting your policies.

1. Auto Insurance Shock: More than half of U.S. auto parts are imported. Under tariffs of 25–50%, the cost of repair parts rises sharply. Insurers expect auto premiums to rise by 6–10% or more in 2025 due to higher claims severity.
2. Home & Property Costs Surge: Tariffs on construction materials—including lumber, steel, aluminum, and copper—raise rebuildi ...