In a move that has caused a disruption in global trade, President Donald Trump has slapped a sweeping 14% tariff on Nigerian exports to the United States. This decision, part of a broader strategy to “rebalance” trade, came during a ‘Make America Wealthy Again’ event in the White House Rose Garden on Wednesday evening.
The new tariffs, effective immediately, are part of an executive order that also introduces a baseline 10% duty on all U.S. imports and higher tariffs on select countries. Nigeria now joins a long list of nations facing steeper export costs to the U.S., with some, like Vietnam and Cambodia, hit with staggering 46% and 49% tariffs, respectively.
According to the Trump administration, the U.S. has long suffered from an unfair trade relationship with Nigeria. The government pointed to Nigeria’s 27% tariff on American goods, claiming it puts American businesses at a disadvantage. As a countermeasure, Trump imposed the 14% tariff on Nigerian exports, arguing that it was time for a fairer playing field.
“This is one of the most important days in American history,” Trump said. “We will supercharge our domestic industrial base. We will pry open foreign markets and break down foreign trade barriers.”
Nigeria exported $6.29 billion worth of goods to the U.S. in 2023, according to data from the Observatory of Economic Complexity (OEC). The bulk of these exports are crude petroleum ($4.73 billion), petroleum gas ($920 million), and nitrogenous fertilizers ($167 million). These commodities will now face a significant cost increase.
For Nigerian exporters, this tariff presents a tough challenge. Higher costs could weaken demand for Nigerian goods in the U.S., making them less competitive against products from other countries. Oil and gas, Nigeria’s top exports, could take a direct hit, potentially affecting government revenue and foreign exchange inflows.
Stock markets had closed higher before Trump’s announcement but quickly stumbled afterward, with fears of a global trade war rippling through financial sectors. Businesses that rely on U.S. partnerships are now scrambling to assess how these new tariffs will impact their bottom line.
Nigeria isn’t alone in facing these tariffs. Trump’s new policy affects over 60 countries, with some facing even harsher penalties. China, already in a tense trade battle with the U.S., now faces a 34% tariff. India will see 26%, while South Korea, Japan, and Taiwan face 25%, 24%, and 32%, respectively. In other news, iNaijanow recently shared a post on Wizkid’s latest achievement as Africa’s highest earning artist on spotify.
Some of the steepest tariffs hit African nations. South Africa, for instance, now faces a 30% tariff, while Lesotho and Mauritius were handed 50% and 40%, respectively. The tariffs on Nigeria, Kenya (10%), and Ghana (10%) suggest that even developing economies are not exempt from Washington’s new trade stance.
Trump made it clear that exemptions won’t come easily. “To all the foreign leaders who will soon be calling to ask for exemptions from these tariffs, drop yours first,” he said.
With the tariffs in place, Nigerian officials and business leaders must decide how to respond. Some analysts suggest that Nigeria may need to negotiate a trade deal with the U.S. to avoid long-term economic strain. Others argue that diversifying exports and reducing dependency on oil could help cushion the impact.
Nigerian businesses exporting to the U.S. must prepare for higher costs, tougher competition, and potential shifts in trade dynamics. Whether this policy ultimately benefits America as Trump claims, or backfires by straining international relations, remains to be seen. The US just changed the global trade landscape and Nigeria needs to respond appropriately.
