Trump’s 14% Tariff Imposes Risks on N323.96bn Nigerian Non-Oil Exports to the US
US President Donald Trump’s newly implemented Universal Baseline Tariff, announced on April 2, 2025, has placed a significant portion of Nigeria’s non-oil exports to the United States at risk. The policy introduces a 14% tariff on various imported goods, including Nigerian products such as urea, cocoa beans, and refined lead. While Nigeria’s crude oil and energy-related exports remain exempt, the non-oil sector, which contributes N323.96bn to Nigeria’s exports, faces major challenges in the U.S. market. Key exports like urea and cocoa beans, vital to U.S. industries, are now less competitive due to the tariff hike.
In 2024, Nigeria’s exports to the U.S. were diversified across agricultural, industrial, and mineral sectors. Non-oil products such as urea, cocoa beans, and natural rubber accounted for a significant portion of these exports, which have now become vulnerable due to Trump’s tariff policy. Nigeria’s strong presence in the global fertilizer market, particularly with urea, could be severely impacted, as U.S. buyers may seek cheaper alternatives from other nations. Similarly, cocoa beans, essential to the U.S. confectionery industry, could lose market share to rival producers.
The Nigerian government has expressed concerns over the impact of these tariffs on the country’s trade relations with the U.S. Despite the exemption of oil and mineral exports, which make up the majority of Nigeria’s trade with the U.S., officials worry that the broader economic effects of the tariffs could hinder the nation’s export diversification strategy. The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, highlighted the potential harm to the competitiveness of Nigerian non-oil goods, which are crucial for the country’s economic growth outside the oil sector.
In response to the tariffs, Nigeria’s Minister of Finance, Wale Edun, downplayed the overall impact, suggesting that the tariffs would have a negligible effect on the Nigerian economy due to the dominance of oil and mineral exports. However, experts warn that the new policy could lead to higher prices for U.S. consumers, reduced demand for Nigerian goods, and a slowdown in manufacturing, thus challenging Nigeria’s efforts to strengthen its economic diversification. As trade tensions rise globally, Nigeria’s economic management team continues to monitor the situation, adjusting projections and strategies for future growth.
Source: punch