02-25-25 YMS Will President Trump’s car tariffs increase your insurance premiums? National Correspondent RORY O’NEILL says “possibly.” He explained why.

Will President Trump’s car tariffs increase your insurance premiums? National Correspondent RORY O’NEILL says “possibly.” He explained why.

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Episode Transcript

Speaker 1 (00:00):
Previously on Your Morning Show with Michael dil Choono.

Speaker 2 (00:04):
Will President Trump's car tariffs increase your car insurance? Well,
I guess it all depends, Rory O'Neil, on what kind
of car you buy, right, I might be switching to
Cadillac after all.

Speaker 3 (00:17):
Well, and it depends on where these parts are coming from, obviously. Well,
they already say that insurance premiums are going to be
going up five percent, but they'll go up sixty percent
more than that if these tariffs take hold, because the
cost of fixing your car is going to go up
that much more as well. So it's it's just one

(00:37):
of those trickle down effects that you may not realize
ends up affecting you with this talk about tariffs.

Speaker 2 (00:44):
You know, it's funny if you if you're searching for
a car and it searches better than the destination. For me,
I make a year long process out of picking my
next car. But if you go and you open up
the stickers themselves, if you haven't done it in a while,
go to the bottom of the window sticker and some
of them do it right online and you can see,

(01:05):
like in Mike in this one that I'm looking at
thirty nine percent of the vehicle and its parts are
from Canada and the United States. Now what percent of
that thirty nine percent is Canada? That leans more US
than Canada, I happen to know. But still there's parts
from Canada. To your point, major sources of foreign parts

(01:27):
include seventeen percent from Mexico and fifteen percent from China.
So if you think you're buying an American in a Cadillac,
there's a lot of ingredients in there that could be
affected by this. But if the trade off is manufacturing
moves here with jobs and then that lowers cost of living,
you know it'll all come back. But yeah, there's temp

(01:49):
all this Israel is what more temporary potential pain for
a long term gain is the play anyway? Which are
being sold? Right?

Speaker 3 (01:57):
And look, twenty five percent though may also not be
enough in terms of it's probably more than twenty five
percent cheaper to make the part in Mexico, right, So
even with a twenty five percent tariff, it's still maybe
saving GM five percent compared to what they would have
to pay if they build a plant in the US.

Speaker 2 (02:14):
But why are cars suddenly so much money and thus
insurance with it? Because of inflation and cost of living?
How did that happen? You continue and technology and technology,
but you continue to pump money into an economy unearned
versus manufacturing where you're building products that brings down I mean,
that's the ultimate solution for inflation. It may have a

(02:36):
temporary negative effect. My curious question today, and onlyly have
you for thirty more seconds, is the President has made
the announcement that the tariffs will move forward on Canada
and Mexico. Does that mean he's not seeing the kind
of progress that they had promised, or that's just the
deal that's in place as long as they keep doing
what they're doing.

Speaker 3 (02:55):
It's a bit unclear. You know, he picked the pan
only thirty days after those two sides agree to those
two announcements. And you know he even at the time
he said it was just a thirty day extension. So
it seems that he's following through on that. Roy O'Neil
always a great reporting. He's going to return in the
third hour as we post look at a new study
that's out on the most sinful states in America. Sinful well,

(03:19):
sin city is Vegas still right? New Orleans has got
to still be up there. Absolutely all New Orleans has
been through.

Speaker 2 (03:26):
They haven't stopped sitting, and it's Mardi Gras even as
we speak. Syet 'b be back next hour with that story.

Speaker 1 (03:33):
Miss a little, miss a lot, miss a lot, and
We'll miss you. It's Your Morning Show with Michael del
Churno