Nigerian vehicle importers may soon face higher costs following US President Donald Trump’s plan to impose a 25% tariff on automobile imports, alongside similar duties on semiconductors and pharmaceuticals. This move is part of a broader strategy to reshape global trade and could have significant implications for Nigeria’s auto market.
According to a Reuters report on Wednesday, Trump intends to implement the new levies as soon as April 2, a day after receiving reports from his cabinet outlining tariff options. He has long criticized what he perceives as unfair trade practices, pointing out that while the European Union imposes a 10% duty on vehicle imports, the US rate for passenger cars is only 2.5%. However, the US already enforces a 25% tariff on imported pickup trucks, excluding those from Mexico and Canada.
Impact on Nigerian Vehicle Imports
Reacting to the development, the Head of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), Mr. Nnadi Ugochukwu, warned that the tariff hike would increase the cost of vehicle importation into Nigeria.
“Yes, it will definitely affect vehicle importation into Nigeria because most of the cars that come into Nigeria are from the US. So if they are buying it higher, it means they will be selling it higher to Nigerians,” Ugochukwu said.
Nigeria heavily relies on vehicle imports from the US, with used cars forming a significant portion of the market. A rise in US auto tariffs could lead to increased costs for Nigerian importers, which would then be passed on to consumers.
Trade Negotiations and Global Reactions
Meanwhile, the European Union’s Trade Chief, Maros Sefcovic, was scheduled to meet with US officials in Washington to discuss the impending tariffs. Trump has suggested that the EU may lower its auto tariffs to match the US rate, though EU officials have denied any such agreement.
Trump also announced plans to impose sectoral tariffs on pharmaceutical products and semiconductor chips, starting at 25% and potentially increasing over the course of a year. While no date has been set for these tariffs, he indicated that companies in these sectors would be given time to establish US-based manufacturing to avoid the duties.
With the proposed tariff set to take effect in just over a month, Nigerian vehicle importers and consumers may soon have to adjust to rising costs in an already volatile market.
