The American Property Casualty Insurance Association (APCIA) has expressed concerns that new tariffs on several countries could negatively impact homeowners and businesses in the wake of recent natural disasters. David A. Sampson, the president and CEO of APCIA, issued a statement highlighting the potential disruptions these tariffs could cause.
Sampson stated in a March 4th release, “Tariffs can be effective tools of government if used with precision.” He added, “However, these new tariffs are so broad that they are likely to hurt families, individuals, and business owners they are meant to protect.” He warned that the increased costs stemming from these tariffs could impact the affordability of personal and business insurance across the nation within an already “plagued” marketplace.
The tariffs, including a 25% levy on goods from Mexico and Canada, and a 10% tariff on goods from 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,” Sampson explained. “The impacted areas already face reconstruction challenges, and the added increased cost burdens will likely significantly affect the recovery efforts,” he continued.
Beyond reconstruction, Sampson pointed out the anticipated rise in auto part prices, which would subsequently raise repair costs. APCIA has estimated that potential increases could raise the cost of annual personal auto insurance claims alone by $7 billion to $24 billion, Sampson stated.
While expressing the association’s support for leveling the playing field in international trade, Sampson said APCIA also supports efforts to secure the U.S. borders, combat the entry of illegal drugs, bolster domestic manufacturing, and increase job opportunities for American workers.
