US Auto Tariffs to Increase Costs for Nigerian Vehicle Importers

Freight forwarders have warned that Nigerian vehicle importers may face higher costs following former US President Donald Trump’s plan to impose a 25% tariff on automobile imports, alongside similar duties on semiconductor and pharmaceutical imports.

According to a Reuters report on Wednesday, the move is part of a broader effort by Trump to overhaul global trade policies. The tariffs are expected to take effect on April 2, a day after his cabinet members are scheduled to submit reports outlining potential trade measures.

Trump has frequently criticized what he sees as unfair trade practices affecting US automotive exports.

“The European Union, for instance, imposes a 10% duty on vehicle imports—four times higher than the US passenger car tariff rate of 2.5%. However, the US already imposes a 25% tariff on pickup trucks from countries outside Mexico and Canada, making these vehicles highly profitable for Detroit-based automakers,” the report stated.

Impact on Nigeria’s Auto Market

Reacting to the proposed tariffs, Mr. Nnadi Ugochukwu, Head of the Department of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), noted that the decision would have a direct impact on 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. If the purchase price goes up, Nigerian importers will have to sell at higher prices,” Ugochukwu explained.

Meanwhile, European Union Trade Chief Maros Sefcovic is expected to meet with US Commerce Secretary Howard Lutnick, Trump’s nominee for US Trade Representative Jamieson Greer, and National Economic Council Director Kevin Hassett in Washington to discuss the proposed tariffs.

Although Trump has claimed that the EU is willing to reduce its tariffs on US automobiles to match US rates, EU lawmakers have denied any such commitment. He also emphasized the need for the EU to increase its imports of American cars and other goods.

Additionally, Trump revealed plans to introduce sector-specific tariffs on pharmaceuticals and semiconductor chips, which would start at 25% or higher, increasing over time. However, he did not specify when these duties would be implemented, stating that he wants to allow manufacturers time to establish production facilities in the US to avoid the tariffs.

Source: The Bureau Newspaper

Ok

Hmmmm,,its well oo..Those wey go buy go still buy..

No more Cadillacs, produce your own cars

We'll buy from Saudi Arabia or China

weldone mr president lol

Trumpet on the beat

This is tragic

How I wan fit get car now?

Export or import?

The tariff will only affect US buyers.

It's not about being a blogger, get an education.

The thrash article has no impact on Nigeria.

What an utter cockwomble.

Wentin concerns Nigeria with America tariff

Another lie to increase car price in Nigeria.

The 25% increase is on imported cars to the USA, not cars that are exported out of USA. You will hear Nigerian dealers increase there price over what doesn't affect them.

Sellers in Nigeria are all out to make cut throat profit

Read it. Makes zero sense.

It might make cars more expensive in the US - Import

But not more expensive going out- export.

Yes higher car price might affect car price within the USA...

But this is just another excuse for Nigerian dealers.

Let them keep increasing the price... later they will hustle to sell them

SheikhMuniru:
We'll buy from Saudi Arabia or China

Saudi and China produce cars that are being used in Nigeria??

Let it soar naaa so that the Armed Robbers & Kidnappers selling Cars in Nigeria at exorbitant & ridiculous rates (especially here on Nairaland) can embrace their true calling of “Kidnapping & Armed Robbery” while their family members begin to drive all their OVERPRICED VEHICLES parked at their car lots.

It's called chicken tax (it's already%25 and now another one X2. It will make it %50), thats why you don't see Peugeot of 1990 up in the American market. No Hilux but Tacoma, no Prado land cruiser but Lexus GX LX

Meanwhile

Who dey buy car now sef , dealers are frustrated since subsidy removal. Those having V6 and V8 are having tough time selling those cars. Private sellers have removed hopes on selling V8 despite offering lower prices. European 4-cylinders with small engine displacement are hot cakes now

lol

PremiumTech:


Source: The Bureau Newspaper

How is he former president?? Like u stated ...correct that error

Scarecrow journalism. The tariff is on American imports not exports.Moreover Nigeria imports used cars from the US not new ones so price changes will not be forthcoming for the next few years. Too much rubbish journalism on the Internet.

I doubt if this has any direct link with the price of cars in Nigeria

Mail me raphaelondo@gmail.com for a link to monetize your Whatapp

Free2Fly:


Saudi and China produce cars that are being used in Nigeria??

YES many cars, trucks, busses, etc

Really? How exactly will the tariff cause price to soar in Nigeria? The tariff will be on new cars imported to the US ... as in from Japan ...Germany ...Italy ...Mexico etc. Do we then mostly import these cars into Nigeria? ... or do we mostly import used cars? Even if a dealer wants to import new cars ... why would he import the car from the US with added 25% cost instead of importing it directly from the country of origin? I believe the dealers are looking for an excuse to jack up the price of cars

Time to ship in cars from China and Japan

Bloggers with click bait articles. Imagine trying to create a relationship between US import tariffs and Nigerian automobile importers.

Shippers better get ready to bring in Japanese vehicles from Pakistan and environs.

Trump to the rescue

Jagaban don hold the whole world for brockus. Now it is operation grab as much Naira as you can at the peak of Naira depreciation before it starts appreciating. Jagaban na man and a half you be.

Not true . Only those in the USA

Aspiren:
It keeps getting harder to achieve anything in this cruel world

I dey sell rat poison o and it is very ship

Una no just get sense for Nairaland. How does 25% tariffs on imports in USA concern us in Nigeria. Must every news be linked to Nigeria. Bunch of illiterates.