Dealers and repair shops in Maine face rising costs from tariff hikes on imported vehicles and parts, with potential price surges looming as US trade talks near deadlines.

Higher costs risk slowing the used car market and increasing insurance premiums for consumers.

Auto dealers and repair businesses right here in Maine are really feeling the squeeze of the ongoing and, frankly, escalating tariffs that the Trump administration slapped on imported vehicles and parts. Keith Petrin, who owns Seaside Auto Sales and Service in Saco, emphasizes how these tariffs are hitting his bottom line—costs for vehicle parts have shot up, especially for components imported from places like China and Japan. “The price of bumper covers has almost doubled,” he notes, pointing out that parts such as exhausts, fenders, and bumpers—most of which are made in China—are now way more expensive. This jump in parts costs is adding more fuel to the fire in the used car market, which itself has slowed quite a bit because of higher prices. Dealers like Petrin find it challenging to manage their inventory when prices keep climbing. He points out, “The prices look like they’re maxed out right now. I honestly don’t even know if they’re going to get any higher. It’s hard to tell at this point.”

Now, this increase in costs from tariffs is happening just as the trade talks heat up, with a big deadline looming—midnight, to be precise—before the U.S. finalizes deals with Canada and Mexico. For Maine dealers, Canada’s role is pretty significant since many North American car brands import parts or vehicles from our neighbor to the north. If things don’t go smoothly, tariffs could jump from 25% to 35%, which means prices could rise even more. Plus, Mexico just managed to snag a 90-day extension on some trade issues, giving a little breathing room for now. But, honestly, the uncertainty surrounding these negotiations keeps everyone on edge, and it makes predictions for the market pretty tricky.

Adam Lee, Maine’s biggest auto dealer through Lee Auto Malls, shares the same concerns. He expects that if tariffs are increased, the prices on imported vehicles will skyrocket—estimating that cars that currently go for about $50,000 might jump to around $62,000. Trucks, which usually sell closer to $60,000, could see prices soaring up to $85,000 or even $90,000. That kind of hike could really scare off buyers, and there’s a real risk that lower sales might slow down the economy a bit.

But it’s not just the sticker prices that are affected. These tariffs are likely to bump up vehicle insurance costs too. As the price of the vehicles themselves rise, and repair costs increase because of more expensive parts, insurance companies will probably pass those costs onto consumers. That means, folks could end up paying more for both buying and maintaining their cars. Meanwhile, insurers are trying to plan without a clear picture, which isn’t exactly ideal when the tariff landscape is so uncertain.

Looking across the country, the automotive sector is feeling similar pressures. Big manufacturers have responded in different ways—raising prices, adjusting import fees, halting some production lines, and even laying off workers. Volkswagen, for example, has added import fees directly to the sticker prices of their vehicles coming into the U.S., and they’ve stopped rail shipments from Mexico altogether. Stellantis, which owns brands like Jeep and Ram, has temporarily shut down some of their facilities in Canada and Mexico, leading to layoffs for about 900 workers at related U.S. plants. It’s clear these tariffs are truly reshaping how cars are made, shipped, and sold across North America.

Economists point out that right now, the U.S. government imposes a 25% additional tariff on imported passenger vehicles and light trucks. When you add other fees, that actually pushes the total up to roughly 27.5% on passenger cars and about 50% on light trucks from countries without free trade agreements with the U.S. All these tariffs together have caused vehicle prices to go up roughly 10 to 15 percent, although some segments—especially higher-end models—are seeing even steeper hikes. Experts warn that over time, these tariffs could slow down sales and push prices much higher, which isn’t exactly good news for consumers.

On the bigger picture, these tariffs are part of a broader strategy aimed at addressing trade imbalances and even national security concerns. But, right here, in Maine and other tariff-sensitive regions, the immediate impact is pretty clear—as dealers, repair shops, and customers all face higher costs. Everyone’s keeping a close eye on the ongoing trade negotiations, hoping for solutions before those tariff deadlines kick in. If trade talks resolve quickly, it could stabilize the market, keep prices in check, and lessen the economic ripple effects that are already starting to show in the auto industry supply chains and aftermarket sectors.

Sources:
- Paragraph 1: [[1]](https://www.wmtw.com/article/car-dealers-wonder-how-more-tariffs-could-further-affect-auto-prices-in-maine/65567433), [[2]](https://www.wmtw.com/article/car-dealers-wonder-how-more-tariffs-could-further-affect-auto-prices-in-maine/65567433)
- Paragraph 2: [[1]](https://www.wmtw.com/article/car-dealers-wonder-how-more-tariffs-could-further-affect-auto-prices-in-maine/65567433), [[2]](https://www.wmtw.com/article/car-dealers-wonder-how-more-tariffs-could-further-affect-auto-prices-in-maine/65567433)
- Paragraph 3: [[3]](https://www.mainebiz.biz/article/maines-largest-car-dealer-braces-for-devastating-tariffs)
- Paragraph 4: [[4]](https://www.mainepublic.org/2025-04-16/heres-why-tariffs-could-push-up-your-car-insurance-bill)
- Paragraph 5: [[5]](https://www.cnbc.com/2025/04/04/autos-car-giants-answer-trump-tariffs-with-price-hikes-and-layoffs.html)
- Paragraph 6: [[6]](https://www.truecar.com/auto-tariffs-explained/), [[7]](https://www.wmtw.com/article/trump-25-tariffs-on-imported-cars-take-effect/64374257)
- Paragraph 7: [[1]](https://www.wmtw.com/article/car-dealers-wonder-how-more-tariffs-could-further-affect-auto-prices-in-maine/65567433), [[3]](https://www.mainebiz.biz/article/maines-largest-car-dealer-braces-for-devastating-tariffs), [[5]](https://www.cnbc.com/2025/04/04/autos-car-giants-answer-trump-tariffs-with-price-hikes-and-layoffs.html)

Source: Noah Wire Services