APCIA: Tariffs to Hurt Families and Business Owners, Affect Affordability

The president and CEO of the American Property Casualty Insurance Association issued a statement calling the tariffs on Mexico, Canada, and China a disruption as many homeowners attempt to rebuild after recent natural catastrophes.

“Tariffs can be effective tools of government if used with precision,” said David A. Sampson in a March 4 statement. “However, these new tariffs are so broad that they are likely to hurt families, individuals, and business owners they are meant to protect.

Increased costs would affect the affordability of personal and business insurance nationwide during a time when the marketplace is already “plagued by legal system abuse and regulatory uncertainty,” he added in the March 4 statement.

Sampson said the 25% tariffs on Mexico and Canada, and the 10% tariffs on China, will “likely disrupt vital reconstruction material supply-chains at a critical moment of rebuilding from recent catastrophes, including Hurricane Helene and Milton and the unprecedented California wildfires.”

“The impacted areas already face reconstruction challenges, and the added increased cost burdens will likely significantly affect the recovery efforts,” Sampson continued.

In addition, Sampson said the tariffs can be expected to increase the cost of auto parts, adding to repair costs 鈥� a factor in rate making.

“APCIA has estimated that annual personal auto insurance claims costs alone could rise by anywhere between $7 billion and $24 billion,” Sampson said.

Sampson said: “APCIA supports efforts to ensure our trade partners are living up to their commitments and that our global rivals are not dumping underpriced goods into our economy. APCIA also supports efforts to gain control of our borders, stop the flow of illegal drugs into the U.S., strengthen our national security by rebuilding American manufacturing, and provide more jobs for American workers.”

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