Trump’s 14% Tariff on Nigerian Exports Poses Threat to $6 Billion Annual Revenue

The recent imposition of a 14% tariff by U.S. President Donald Trump on Nigerian exports has raised serious concerns among stakeholders and exporters. This new policy threatens Nigeria’s $6 billion in annual export revenue, primarily from non-oil exports, which have previously benefitted from duty-free access under the African Growth and Opportunity Act (AGOA). Experts warn that the tariff could jeopardize Nigeria’s trade relationship with the U.S. and potentially lead to job losses, especially in the non-oil sector, which is crucial to the country’s economic diversification efforts.

Nigeria’s federal government has acknowledged the challenges posed by this development but is committed to mitigating the impact. The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, emphasized the need to expedite efforts to diversify the economy and improve compliance with international trade standards. Despite crude oil dominating the majority of exports to the U.S., non-oil sectors, including agriculture and agro-processing, are expected to suffer due to the tariff’s effect on price competitiveness and market access.

Stakeholders, including experts in Nigerian commerce, foresee a reduction in the country’s export volumes, a drop in foreign exchange earnings, and potential job losses as a result of the tariff. Analysts suggest that Nigerian exporters may struggle to maintain market share in the U.S., particularly in value-added sectors, and could face increased costs and uncertain demand. This could undermine Nigeria’s aspirations to diversify its economy away from dependence on crude oil.

While some experts argue that the tariff’s impact on Nigeria’s overall economy might be limited due to the relatively small share of trade with the U.S., the situation may cause indirect disruptions. Inflationary pressures in the U.S. and potential disruptions to global supply chains could elevate costs for imports into Nigeria, affecting both the local economy and foreign reserves. Nigeria’s government may need to reconsider its own tariff policies to avoid further escalation in the ongoing trade dispute.

Source: the sun