Trump Tariffs: Nigeria one of 48 countries that has trade deficits with the US
Nigeria is among 48 countries with a trade deficit with the United States, which has significant economic ties with Africa’s largest economy. The U.S. has recently escalated its trade tensions by imposing tariffs on key trading partners, including Canada, Mexico, and China. This marks a major shift in global trade dynamics, as U.S. President Donald Trump focuses on addressing issues such as illegal immigration and drug trade.
On February 4, 2025, the U.S. will impose 25% tariffs on all goods from Canada and Mexico, along with a 10% tariff on Canadian oil and Chinese products. These policies have already triggered retaliatory tariffs from Canada and are expected to affect U.S.-China trade, especially in electronics and apparel. Mexico is also contemplating similar countermeasures.
Nigeria, although not directly targeted by these tariffs, maintains an important trade relationship with the U.S. In 2024, Nigeria exported $5.29 billion in goods to the U.S., resulting in a trade surplus. However, trade volumes between the two countries have fallen dramatically by 73% over the past decade, largely due to the U.S. reducing crude oil imports from Nigeria.
Despite a significant decline from a high of $74 billion in 2011, the U.S. remains Nigeria’s second-largest export destination in Sub-Saharan Africa. Nigerian exports to the U.S. include crude oil, cocoa, and cashew nuts, while U.S. exports to Nigeria comprise vehicles, machinery, and wheat. Nigeria benefits from trade agreements like AGOA and has growing opportunities in sectors such as entertainment.
In response to the shifting global trade landscape, Nigeria’s policymakers are considering a “Nigeria-First” approach to strengthen bilateral ties with the U.S. This strategy aims to revitalize trade relations, boost foreign direct investment, and position Nigeria as a key player in the evolving global economy. The Nigerian government remains optimistic about its ability to adapt, despite the ongoing tariff war between the U.S. and Canada.
Source: Nariametrics