What Trump’s Automobile Export Tariff Means for Cars Made in Nigeria

Foreign Vehicle Price Hike Looms as US Plans 25% Tariff

Trump is taking the world unawares, with his new policies that are made to strengthen the American economy, It might just be the policy to tear down her exploiters, trouble hasn't taken a better form, especially in the global auto industry, and Nigerian vehicle importers might be caught in the crossfire. 

US President Donald Trump has announced plans to impose a 25% tariff on automobile exports, alongside similar duties on semiconductor and pharmaceutical imports. If this policy goes into full effect by April 2, as Trump suggests, it could shake up international trade in ways that directly affect Nigeria's automobile market.

For years, Trump has been vocal about what he perceives as the unfair treatment of US auto exports in foreign markets. Now, he seems ready to back up his words with aggressive tariffs. 

What Does This Mean for Nigeria Automobile Importers?

Nigerians have long relied on tokunbo (foreign used) cars due to their affordability compared to brand-new vehicles. The most sought-after models, including the Toyota Camry, Corolla, and Highlander, as well as the Lexus RX and ES, are largely sourced from the US. If Trump's tariffs push prices higher, Nigerian car dealers will be forced to pass the cost down to consumers, making tokunbo cars significantly more expensive.

Freight forwarders and industry analysts agree that this policy could disrupt the Nigerian auto market. Mr. Nnadi Ugochukwu, Head of the Department of Shipping and Terminals at the National Association of Government Approved Freight Forwarders (NAGAFF), has already pointed out that vehicle importation costs will rise.

But could this shake-up also be the golden opportunity Nigerian auto manufacturers need to finally break into the mainstream?

The Innoson Vehicle Opportunity And Origin

While the import-dependent Nigerian automobile market braces for impact, a silent giant might just be waking up. Innoson Vehicle Manufacturing (IVM), is Nigeria’s very own Indigenous automobile brand.

To understand why IVM matters in this conversation, let’s rewind a little.

IVM started in 1978. Nnewi, a bustling commercial town in southeastern Nigeria, was the go-to hub for motorcycle importation. Much like today’s tokunbo cars, foreign-used motorcycles dominated the market. But by 1987, the price of a brand-new motorcycle had soared to N150,000, while tokunbo ones sold for around N90,000 to N100,000.

Innocent Chukwuma, the founder of IVM a 25-year-old entrepreneur with a different vision. Instead of following the crowd, he asked a simple yet powerful question: 

Why can’t we manufacture our own? 

His answer came in the form of Nigeria’s first locally made motorcycles, which sold for as low as N60,000. By 2002, tokunbo motorcycles had practically disappeared from the Nigerian market.

Fast forward to today, and Chukwuma’s Innoson Motors is applying the same playbook to automobiles. IVM produces durable, affordable brand-new cars, many of which cost about the same as their tokunbo counterparts. Yet, for all its potential, Innoson has struggled with visibility, marketing, and a deeply entrenched culture of classism preferring foreign brands over local ones.

Could Trump's Tariff Be IVM’s Big Break?

If US-imported vehicles become less affordable due to Trump’s tariffs, more Nigerians may start looking inward. This presents a massive opportunity for IVM, but only if the company plays its cards right.

One of the biggest barriers to IVM’s mainstream adoption has been awareness. Many Nigerians don’t even know the full range of vehicles Innoson manufactures. For example, did you know IVM has an electric car? A mini-Tesla, proudly made in Nigeria. The potential is enormous, yet marketing gaps have kept the brand under the radar for too long.

With the looming price hike on foreign cars, Innoson has a real shot at breaking into the mainstream. The company needs to step up its branding, push aggressive marketing campaigns, and solidify partnerships with the Nigerian government and private sector players. If IVM seizes this moment, it could permanently change Nigeria’s automobile landscape.

Nigeria is one of the biggest consumers of automobiles in the world, yet it hardly manufactures its own. For decades, the country has been a dumping ground for foreign-used vehicles. But must we always drive second-hand cars? Must we always rely on imports?