Auto insurance is poised to become even more expensive under President-elect Donald Trump’s plan to impose new tariffs on top U.S. trading partners.

About 60% of replacement parts used to repair cars in the U.S. are imported, mainly from Mexico, China and Canada, said Bob Passmore, a vice president for the American Property Casualty Insurance Association. New tariffs would increase the cost of parts, which account for about 40% of the average total repair bills borne by insurers, and would prompt them to eventually increase rates, he said.

“A broad tariff on auto parts would create a problem — it would definitely have an impact,” Passmore said in an interview. “Ultimately, the cost of claims is the primary driver of what we pay for our insurance.”

Trump announced Monday that he would impose additional tariffs of 10% on goods from China and 25% on all products from Mexico and Canada. Such levies would dash consumer hopes for a stabilization in car insurance premiums amid lower insurance losses this year, after several years of increased pricing.

In 2023, the average premium jumped about 20% on average, according to the Insurance Information Institute.

Newsom pledges to revive EV rebate if Trump repeals subsidy

Gov. Gavin Newsom is promising to step in with a state electric-car tax credit if U.S. President-elect Donald Trump repeals a federal subsidy after he takes office next year.

Newsom, a prominent Democrat and frequent critic of Republican politics, said in a statement Monday that he will propose rebooting a program California phased out in 2023 to provide EV buyers relief in lieu of a $7,500 tax credit targeted by Trump.

Tesla’s electric vehicles would be excluded from the consumer rebates, a decision by state lawmakers aimed at spurring greater competition that’s likely to draw the ire of Elon Musk.

The governor’s office told Bloomberg that the current proposal includes market-share limitations that would exclude Tesla’s popular EV models. “It’s about creating the market conditions for more of these carmakers to take root,” according to the governor’s office.

Workwer brand Dickies leaving Texas for Southern California

The workwear brand Dickies is relocating to California after 102 years in Texas.

The move is part of a restructuring and cost-savings measures by parent company VF Corp., which also owns Vans and several other well-known lifestyle brands.

The move is expected next spring as Denver-based VF further consolidates its real estate portfolio. The company has targeted more than $300 million in cost savings for its fiscal year ending in March 2025, according to a company spokesman and recent corporate filings.

As part of the plan announced Nov. 22, Dickies will share headquarters space with Vans at its Costa Mesa hub.

The relocation of Dickies, which VF bought in 2017 for $820 million, will affect 120 jobs in Texas, a company rep said.

California EV maker Rivian gets approval for $6 billion U.S. loan

The U.S. Department of Energy is making a $6.6 billion loan to Rivian Automotive to build a factory in Georgia that had stalled as the startup electric vehicle maker struggled to become profitable.

It’s unclear whether the Biden administration can complete the loan before Donald Trump becomes president again in less than two months, or whether the Trump administration might try to claw the money back.

Trump previously vowed to end federal electric vehicle tax credits, which are worth up to $7,500 for new zero-emission vehicles and $4,000 for used ones.

California-based Rivian made a splash when it went public and began producing large electric R1 SUVs, pickup trucks and delivery vans at a former Mitsubishi factory in Normal, Illinois, in 2021. Months later, the company announced it would build a second, larger, $5 billion plant about 40 miles east of Atlanta, near the town of Social Circle.

Bloomberg, staff writer Pat Maio and The Associated Press contributed to this report.