admin As U.S. President Donald Trump’s steel and aluminium tariffs take effect, Canadian businesses are bracing for the impact.
“We’ll definitely notice the increase … our parts prices will go up,” said Kevin Fujita, co-owner of CSN Kustom in Coaldale. He expects his southern Alberta business to feel the strain, with customers ultimately bearing the cost.
“In our industry, we’re fortunate to have insurance work, but unfortunately, that cost gets passed on to the consumer and the insurance company, which will, in the end, come out of the customer’s pocket.”
Aaron Sutherland, vice-president at the Insurance Bureau of Canada, echoed these concerns, warning that Trump’s 25 per cent tariffs on steel and aluminium, announced on Monday, could have widespread repercussions.
“That steel and aluminium go into the auto parts and vehicles manufactured in the U.S. and then shipped back to Canada. Naturally, as those prices rise, so will the cost of auto insurance claims, which is the biggest factor in determining your auto insurance premium,” Sutherland explained.
While Alberta does have certain consumer protections in place regarding insurance, Sutherland noted that everyday drivers will still feel the effects.
“Here in Alberta, the government has imposed an auto insurance rate cap, preventing insurers from immediately reflecting the increased costs of vehicle parts and materials. However, this doesn’t mean there won’t be an impact over time.”
The uncertainty means businesses must remain adaptable.
“We have to handle it car by car, person by person,” said Fujita. “Not to repeat myself, but we’re just lucky in this industry that we have the insurance network to help manage the costs. We just have to roll with the punches.”
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