Trump Raises Nigerian Import Tariffs to 15% Amid Escalating Trade Disputes

U.S. President Donald Trump signed an executive order on July 31 increasing tariffs on Nigerian imports from 14 to 15 percent, effective August 7, as part of his ongoing trade policy to address perceived imbalances. This adjustment places Nigeria among approximately 40 countries targeted by the U.S. for “unbalanced” trade relationships, with countries running deficits now facing higher default duties compared to those with trade surpluses. Nigeria, which holds a $3.29 billion trade surplus with the U.S., was previously granted a tariff suspension to allow for negotiations that ultimately did not yield an agreement.

The new tariff framework also introduces a stringent 40 percent penalty on transshipments—goods rerouted through low-tariff countries to evade duties—empowering U.S. Customs and Border Protection to clamp down on such practices more aggressively. This move signals a sharper stance by the Trump administration to “restore fairness” and prevent systemic trade abuses in global commerce. Nigeria’s diverse exports, ranging from oil and gas to cocoa and fertilizers, face the risk of higher costs when entering the U.S. market, threatening the country’s economic diversification efforts.

Complicating matters further, Trump has threatened an additional 10 percent tariff on nations aligned with BRICS anti-American policies, directly targeting Nigeria after its January 2025 admission as the ninth BRICS partner. Should this threat materialize, Nigerian tariffs could rise to 25 percent, imposing significant new burdens on exporters. The policy indicates no exceptions, raising concerns over the future trade dynamics between the two countries and the wider impact on Nigeria’s economy.

Despite oil being Nigeria’s main export to the U.S. and accounting for 90 percent of its foreign exchange earnings, it remains unclear whether crude and its by-products will be exempt from the latest tariffs, as they were during the initial imposition in April. This uncertainty adds pressure on Nigerian trade negotiators to seek clarity and better terms to protect critical revenue streams amid escalating U.S. protectionism.

Source: Business day