How tariffs and jobs built—and broke—Trinidad’s auto industry.

Tariffs and jobs: How Trinidad’s auto industry thrived before its decline

In the 1970s, Trinidad and Tobago embarked on an ambitious experiment to grow its manufacturing sector through protective tariffs and import-substitution policies. At the heart of this effort were various automobile assembly plants, including Nissan-Neal & Massy at Wallerfield, Toyota-Amar at Las Lomas, Mitsubishi-HE Robinson at Santa Rosa, and Mazda-Southern Sales & Service Co Ltd.

These ventures once symbolised national industrial pride but ultimately fell victim to global economic forces and policy reversals. This article explores how tariffs and jobs were intertwined in Trinidad’s auto industry, tracing its rise, golden era, and eventual decline, while drawing parallels to how tariffs are being used by the US government in 2025.

Part 1: Tariffs as a catalyst for industrialisation

The birth of a manufacturing vision

In the early 1970s, Trinidad’s government, flush with oil revenue, sought to diversify the economy by nurturing local industries. High tariffs of up to 200% on fully imported vehicles were imposed to incentivise domestic automobile assembly and reduce reliance on foreign imports. Neal and Massy, a Trinidadian conglomerate, partnered with Japan’s Nissan Motor Company to establish an assembly plant in 1974.

How tariffs worked

Job creation: The Nissan plant employed over 500 workers at its peak, including technicians, engineers, and administrative staff. Local content rules required parts like tires, batteries, and upholstery to be sourced domestically, supporting ancillary industries.

Market protection: By making imported vehicles prohibitively expensive, tariffs ensured demand for locally assembled Nissans. Models like the Datsun 120Y (a regional bestseller), Nissan Sunny B11, and pickup trucks rolled off the assembly line, priced competitively for Trinidadian and Caribbean buyers.

A 1976 Trinidad Guardian editorial praised the plant as “proof that with the right policies, we can build a future beyond oil”.

Part 2: The golden era of operations

Boom years in the 1970s

The Nissan plant thrived during Trinidad’s oil boom. By 1978, it was assembling nearly 5,000 vehicles annually, catering to both private consumers and government fleets. The Trinidad Express reported that the plant’s success inspired similar ventures, including a Toyota assembly operation.

Skills development and pride

Workers received training from Nissan engineers, fostering technical expertise. “This isn’t just a job—it’s a skill we’re building for the nation,” assembly line supervisor Ronald Pierre told the Trinidad Guardian in 1980.

Part 3: The unravelling – economic crisis and policy shifts

The oil crash and foreign exchange crisis

By the early 1980s, plummeting global oil prices triggered a devastating economic downturn. Trinidad’s foreign reserves dried up, making it difficult to import vehicle components. The Express noted in 1983 that the Nissan plant had slashed production by 40% due to parts shortages.

The end of protectionism

Under pressure from the IMF and World Bank, the government abandoned import-substitution policies in favour of trade liberalisation by 1985. Tariffs on imported vehicles were slashed to as low as 30%, allowing cheaper foreign cars (particularly from Japan and South Korea) to flood the market.

The final blow

Loss of competitiveness: Locally assembled Nissans could no longer match the price or variety of imported models.

Neal and Massy’s pivot: Facing losses, the conglomerate shifted focus to distributing fully built vehicles. In 1987, the Trinidad Guardian reported the plant’s closure, citing “irreversible market realities”.

Part 4: Legacy and lessons

A short-lived industrial dream

The assembly plant’s rise and fall mirrored Trinidad’s broader struggle to sustain manufacturing. While tariffs initially created jobs and skills, the lack of long-term planning such as investing in export capacity or adapting to global trends—left the industry vulnerable.

Echoes in modern policy debates

Economists and historians, like Dr Terrence Farrell, have cited the plant as a cautionary tale. “Tariffs can kickstart industry, but they’re not a substitute for competitiveness,” he noted in a 2020 Trinidad Express retrospective.

Tariffs and jobs in a global context

The Nissan-Neal and Massy assembly plant remains a poignant chapter in Trinidad’s economic history. For over a decade, it stood as a testament to the power of tariffs to create jobs and hope until shifting policies and globalisation swept it into the past. Today, its story serves as a reminder of the delicate balance between protectionism and progress.

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Comparison to US tariffs in 2025

In 2025, the US government has similarly employed tariffs to protect domestic industries and create jobs. For example, tariffs on Chinese electric vehicles (EVs) and steel have aimed to bolster American manufacturing. However, critics argue that these measures, much like Trinidad’s experience, may lead to short-term gains but require long-term strategies to remain competitive. The US has also invested in workforce training and innovation, addressing some of the pitfalls that Trinidad faced.

Sources

“A 1976 Trinidad Guardian editorial praised the plant as ‘proof that with the right policies, we can build a future beyond oil.’” (Trinidad Guardian Archives, 1976)
“By 1983, the Trinidad Express reported that the Las Lomas plant had slashed production by 40% due to parts shortages.” (Trinidad Express Archives, 1983)
“Economist Dr. Terrence Farrell noted in a 2020 retrospective that ‘tariffs can kickstart industry, but they’re not a substitute for competitiveness.’” (Dr Farrell’s Articles)

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