As the world emerged from pandemic shutdowns in early 2021, a supply chain shock left a lasting imprint on the cost of owning a car in the U.S., spilling out first through prices of used and then new cars and on to replacement parts and finally to loan costs and vehicle insurance rates.
That sustained inflation in the auto industry - vehicle and parts prices are 20% higher than before the pandemic; insurance more than 60% - put a persistent prop under consumer inflation overall, which President Donald Trump may risk reinforcing with 25% tariffs on imported vehicles.