Canada’s foreign minister is warning Americans they will be paying a “Trump tariff tax” if President-elect Donald Trump follows through with a threat of imposing a 25% tariff on all Canadian goods.

New tariffs are likely coming in Trump’s second term. While companies owe these import taxes, consumers usually foot the bill.

When the cost of repairing and replacing vehicles increases, these costs trickle down to insurance companies, who pass them on to policyholders. President-elect Trump has indicated that this tariff could be placed on all goods entering the U.S. from Mexico and Canada, impacting auto insurance costs in a few ways:

Trump has asserted tariffs will boost manufacturing and create jobs in the U.S. However, economists are skeptical and have warned tariffs would be highly inflationary for the U.S. economy and would impact businesses and consumers who would effectively pay them.

Tire makers, dealers, importers and consumers are waiting to see if incoming President Donald J. Trump makes good on threats to increase tariffs on imported goods.