Freight forwarders have warned that Nigerian vehicle importers may face increased costs following US President Donald Trump’s plans to impose auto tariffs of up to 25 percent, as well as similar duties on semiconductor and pharmaceutical imports. These moves are part of a series of trade policies that could disrupt international trade.
Trump announced that the auto tariffs would take effect by April 2, 2025, the day after his cabinet is set to present reports outlining various options for import duties as he seeks to reshape global trade. He has long criticized what he perceives as the unfair treatment of US automotive exports in foreign markets.
For example, Trump pointed out that the European Union imposes a 10 percent duty on vehicle imports, which is four times higher than the US passenger car tariff of 2.5 percent. However, the US applies a 25 percent tariff on pickup trucks from countries outside of Mexico and Canada, making these vehicles highly profitable for American automakers.
In response to the announcement, Nnadi Ugochukwu, Head of the Department of Shipping and Terminals at the National Association of Government Approved Freight Forwarders, stated that the new tariffs would likely have a significant impact on vehicle imports to Nigeria.
Additionally, Trump revealed that sectoral tariffs on pharmaceuticals and semiconductor chips would also begin at 25 percent, with the rates set to rise substantially over the course of the year.
