The president and CEO of the American Property Casualty Insurance Association (APCIA), David A. Sampson, recently expressed concerns about new tariffs imposed on Mexico, Canada, and China. He described these tariffs as a major disruption for homeowners trying to rebuild after recent natural disasters.
In a statement released on March 4, Sampson noted that while tariffs can be useful when applied carefully, the current ones are too broad and could negatively impact families and businesses. He pointed out that the increased costs from these tariffs would make insurance less affordable at a time when the market is already facing challenges due to legal issues and regulatory uncertainty.
The tariffs include a 25% charge on goods from Mexico and Canada, and a 10% charge on imports from China. Sampson warned that these tariffs could disrupt the supply chains for essential reconstruction materials. This is especially concerning for areas recovering from disasters like Hurricane Helene, Hurricane Milton, and the severe wildfires in California.
Sampson emphasized that these regions are already struggling with reconstruction efforts. The added financial burden from tariffs could significantly hinder recovery. He also highlighted that the tariffs would likely raise the cost of auto parts, which would increase repair costs and impact auto insurance rates. APCIA estimates that personal auto insurance claims costs could rise by $7 billion to $24 billion annually due to these tariffs.
While Sampson acknowledged the importance of ensuring fair trade practices and national security, he cautioned that the current approach could hurt those it aims to protect. He called for a more precise use of tariffs to avoid further complications for families and businesses during this critical rebuilding period.