The resurgence of protectionist trade policy under President Trump, particularly through the use of tariffs, marks a significant shift in the global economic landscape – one that Australian insurers cannot afford to ignore.

While the tariffs may seem remote from our domestic operations, their ripple effects are influencing claims costs, supply chains, and investment strategies across the industry.

One of the most immediate impacts is being felt in motor insurance. Although Australia imports few vehicles directly from the US, the parts supply chain is globally interconnected, with significant reliance on China and other Asian manufacturers.

As trade flows divert in response to US tariffs, the resulting disruption may cause parts pricing to become more volatile.

This is set to exacerbate pressures already felt in the Australian automotive repair sector, where rising labour costs and tightening margins mean any increase in parts costs has a magnified effect on insurance claims.

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