U.S. President Donald Trump announced a sweeping tariff policy on Wednesday, imposing a 10% baseline tax on imports from 185 countries and even higher rates on select nations, including Nigeria, which now faces a 14% tariff. Trump’s decision, framed as a national economic emergency, aims to boost domestic manufacturing and reduce what he calls a long-standing trade imbalance.

Higher Tariffs on Key Trade Partners

During his address at the White House, Trump presented a chart outlining the new tariff rates for major U.S. trade partners. Among the most affected are:

• China – 34%

• European Union (EU) – 20%

• South Korea – 25%

• Japan – 24%

• Taiwan – 32%

In Africa, several countries face even steeper tariffs:

• Algeria – 30%

• Lesotho – 50%

• Mauritius – 40%

• Namibia – 21%

• Kenya, Ethiopia, Ghana – 10% each

• South Africa – 30% (reciprocal tariff)

Impact on Nigeria’s Trade with the U.S.

Nigeria, which exports crude oil, natural gas, and agricultural products such as cocoa, sesame seeds, and ginger to the U.S., is expected to feel the impact of the new policy. According to recent trade data:

• In 2021, Nigeria’s exports to the U.S. were valued at $3.6 billion.

• In 2022, this figure rose to $4.9 billion.

• In 2023, exports slightly declined to $4.86 billion.

A significant portion of Nigeria’s exports falls under the African Growth and Opportunity Act (AGOA), a trade program that allows duty-free access for certain goods. However, with crude oil being Nigeria’s dominant export, the new tariffs could affect revenue from petroleum sales to the U.S.

Trump’s Justification for the Tariffs

Trump used strong language to criticize the current global trade system, arguing that the U.S. has been “looted, pillaged, raped, and plundered” by other nations. He defended the tariffs as a necessary step to correct what he sees as unfair trade practices that have cost American jobs.

“Taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore,” he stated, emphasizing that the move would generate hundreds of billions of dollars in annual revenue.

By acting through the 1977 International Emergency Powers Act, Trump bypassed Congress to implement the tariffs, a move he justified by citing America’s $1.2 trillion trade deficit from the previous year. His administration believes these tariffs will pressure foreign governments to lower their trade barriers against U.S. exports.

Potential Economic Consequences

While the tariff hike aligns with Trump’s “America First” economic policy, economists warn of potential risks. The Associated Press noted that increased import taxes could lead to higher prices on goods such as automobiles, clothing, and electronics, impacting both businesses and consumers.

Additionally, if other nations retaliate with counter-tariffs, U.S. exporters, including agricultural and manufacturing sectors, may suffer losses. This could lead to disruptions in global trade and a potential economic slowdown.

What’s Next?

The impact of Trump’s tariff policy will depend on how affected countries, including Nigeria, respond. Some nations may negotiate for lower tariffs, while others could impose retaliatory measures on U.S. goods. Meanwhile, industries reliant on imports could face rising costs, potentially affecting employment and business operations.

As the global trade landscape shifts under these new policies, economic observers will be watching closely to see if Trump’s approach strengthens the U.S. economy or triggers new tensions in international trade.