Vehicle Prices Set To Soar As Donald Trump Moves For 25% Tariff

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

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