Experts Urge Dialogue as Nigeria Braces for Impact of Trump’s 90-Day Tariff Pause
In the wake of U.S. President Donald Trump’s announcement of a 90-day pause on tariff hikes, experts are calling for strategic dialogue and measured responses, especially from vulnerable economies like Nigeria. The temporary halt in the escalating global trade war has offered a brief window for negotiations, sparking hope for a more stable economic outlook. However, concerns remain that this reprieve could be short-lived if diplomatic efforts fail and trade tensions resume, potentially dragging the global economy into recession.
Financial analysts warn that Nigeria, already grappling with fiscal strain, remains highly exposed to the fallout of the global trade dispute. Ayokunle Olubunmi of Agusto & Co. emphasized that while the pause presents a negotiation opportunity, continued trade hostilities could hurt global demand and oil prices, further slashing Nigeria’s revenue. Dr. Ifeanyi Ubah of Comercio Partners echoed this, noting that Nigeria’s budget is built on oil prices around $70 per barrel—well above current market levels—raising the likelihood of increased government borrowing to bridge revenue gaps.
Former Zenith Bank economist Marcel Okeke stressed Nigeria’s limited leverage in the face of global trade power plays, pointing out that the country lacks the economic or military might to engage in retaliation. Instead, he advocated for diplomacy as Nigeria’s most viable strategy, a sentiment mirrored by the Minister of Industry, Trade, and Investment, Jumoke Oduwole. The Minister confirmed that Nigeria is committed to dialogue with both the U.S. and global trade bodies, including the WTO, as it navigates the uncertainties stemming from the tariff standoff.
Meanwhile, the broader geopolitical climate remains tense. Although Trump offered a universal reduction in some tariffs, he simultaneously increased tariffs on Chinese goods, escalating tensions with Beijing. The EU has temporarily paused its retaliatory measures, signaling an openness to negotiation. White House adviser Kevin Hassett suggested deals may soon be struck with key trade partners. Yet, as the International Monetary Fund prepares for a potential wave of loan requests from African countries, Nigeria must act swiftly to buffer itself against external shocks and secure favorable outcomes through strategic diplomacy.
Source: Punch