One of the most common questions we’re asked in 2025 is, “Are we seeing the impact of the tariffs in the collision repair industry?” The answer is yes—but we’re seeing those impacts in some unexpected places.
Using sold parts data from the PartsTrader marketplace, we created a parts market basket report to track inflationary changes across a consistent set of components: fenders, hoods, bumper parts, lamps, and wheels. The data shows that retail prices for OEM parts have started to rise, while aftermarket parts have not yet seen a similar increase.
Approximately 44% of OEM parts used in collision repair are produced outside the United States, and many of these non–USMCA-compliant parts are now subject to tariffs. As a result, OEM retail prices rose 2.1% from Q1 to Q2 2025, compared to a 1% increase during the same period in 2024.
We expect aftermarket part prices to begin rising as well, particularly as existing domestic inventory is depleted and replaced by new, tariff-impacted imports. However, there appears to be a longer “tail” to the inflationary impact in the aftermarket space, with price increases taking longer to surface.
More unexpectedly, we’re beginning to see early signs of industry disruption in the form of bankruptcies. Two major U.S.-based parts manufacturers that rely heavily on imported components are now in serious financial distress.
Marelli Holdings, a key supplier to Nissan and Stellantis, has filed for bankruptcy protection. The company, which produces lighting and internal electronics, owes a combined $767 million in unsecured debt to the two automakers. In a court filing, CEO David Slump noted:
“Marelli was severely affected by tariffs due to its import/export-focused business and the imposition of tariffs specifically against automotive manufacturers and suppliers.”
Detroit Axle, an aftermarket manufacturer of mechanical components often used in collision repair—such as control arms, struts, and rack and pinions—has also indicated plans to file for Chapter 11 protection in the coming weeks. In a lawsuit filed against the administration in May, the company outlined its tariff burden, describing it as “financial ruin.” Detroit Axle now faces a cumulative 72.5% tariff rate on imports, including:
- 20% from IEEPA (fentanyl-related tariffs)
- 25% from Section 232
- 25% on China-origin auto parts under Section 301
- 2.5% Most Favored Nation duty
These challenges are not limited to manufacturing. The logistics sector is also showing signs of strain. On June 2, Port of Los Angeles Executive Director Gene Seroka stated:
“Overall cargo is down at the Port of Los Angeles for May, with 20% of our 80 scheduled vessels having been canceled. The first and fourth weeks of the month saw precipitous drops, exceeding 30% in year-over-year comparisons.”
This reduction in import volume, coupled with declining demand for trucking shipments from Canada and Mexico, has led to widespread layoffs and bankruptcies in the freight industry. According to FreightWaves, 12 trucking companies have filed for bankruptcy protection in the past 60 days, despite a January forecast projecting a 1.6% increase in volume before the tariffs were announced.
What we’re seeing is just the beginning. The supplier network and logistical infrastructure that support the collision repair industry are starting to feel the weight of these tariffs. Both the cost of the part and the cost to deliver it are being negatively impacted.
And the question now is: How much will this eventually cost the industry?
