Freight forwarders warn that US auto tariffs could increase car prices in Nigeria, as most imported vehicles come from the United States
[dropcap]N[/dropcap]igerian vehicle importers may soon face higher costs due to plans by former US President Donald Trump to impose 25% tariffs on automobile imports.
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Freight forwarders in Nigeria have warned that this policy could significantly impact the price of vehicles shipped into the country.
According to a Reuters report, Trump announced that the tariffs would take effect from April 2, following recommendations from his cabinet on various import duties.
The move is part of his broader strategy to reshape global trade by increasing taxes on foreign goods, including automobiles, pharmaceuticals, and semiconductor chips.
Trump has long criticised what he sees as unfair global trade practices. He pointed out that the European Union imposes a 10% tariff on vehicle imports, which is four times higher than the 2.5% duty the US charges on passenger cars.
However, the US already has a 25% tariff on imported pickup trucks from countries other than Mexico and Canada.
Mr Nnadi Ugochukwu, Head of the Department of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), stated that the new tariffs would directly affect 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 at a higher price, it means they will be selling it higher to Nigerians,” he explained.
The European Union’s Trade Chief, Maros Sefcovic, is scheduled to meet with US officials to discuss the proposed tariffs.
Trump has claimed that the EU is considering lowering its tariffs on US cars, though European lawmakers have denied making such commitments.
In addition to auto tariffs, Trump also announced that pharmaceutical and semiconductor imports would be taxed at 25% or higher, with potential increases over the next year.
However, he has not set a specific timeline for these additional duties, stating that he wants to give manufacturers time to relocate production to the US.
If Trump’s tariffs go into effect, Nigerian car dealers who source vehicles from the US may need to adjust their pricing strategies.
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With already high import costs, this policy could further inflate the price of used and new cars in the Nigerian market.

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