In a significant shift in U.S. trade policy, President Donald Trump announced a new tariff regime that includes a 14% duty on Nigerian exports to the United States. This decision is part of a broader move that introduces a baseline 10% tariff on all U.S. imports, while implementing country-specific tariffs aimed at nations with high duties on American goods. Nigeria, which imposes a 27% tariff on U.S. imports, is among the countries targeted, alongside global powers like China, India, and Japan.
Trump framed the policy as a move toward “fair trade,” positioning it as a strategy to strengthen America’s industrial base and create more open markets for U.S. products abroad. During a White House event, Trump proclaimed that the new approach would break down foreign trade barriers and support domestic manufacturing. The policy, effective immediately, affects over 50 countries, signaling a departure from traditional free trade principles that have shaped global commerce since World War II.
While Nigeria has seen a decline in trade with the U.S. in recent years, particularly in crude oil exports, the country remains significantly tied to U.S. imports, with trade between the two nations amounting to over N31 trillion. The new tariffs, however, highlight Nigeria’s ongoing struggle with a fluctuating trade balance. Other African countries, such as Ghana and Mauritius, are also impacted, with Mauritius facing one of the steepest adjustments, as tariffs on its exports to the U.S. are set to increase by 40%.
The introduction of reciprocal tariffs, where the U.S. imposes duties equivalent to half the tariffs foreign nations apply to American exports, signals a reevaluation of trade agreements worldwide. For African nations, particularly those relying on U.S. market access, this policy shift presents both challenges and strategic decisions. Nigeria’s long-term diversification efforts away from oil exports now face additional hurdles in this evolving global trade environment.
Source: The sun