Former U.S. President Donald Trump has reignited his aggressive trade policy. He imposed 25% tariffs on all imported steel and aluminium.

In swift response, Canada introduced its own 25% tariffs on similar products. It also raised taxes on tools, servers, monitors, and sports equipment.

The European Union followed, targeting American beef, poultry, bourbon, and motorcycles. China joined in, vowing to fight the trade war to the end.

European Commission President Ursula von der Leyen warned that the tariffs would raise prices and threaten jobs. “Tariffs are taxes,” she said. “They hurt businesses and consumers alike.”

Trump Pushes for Local Manufacturing

Trump defends the tariffs as a tool to protect U.S. manufacturers. He urged American firms to produce locally or face heavy import penalties.

“Make your product in America,” Trump said. “If not, expect a large tariff. Tariffs will make America rich again.”

Analysts, however, warn that these retaliatory moves could hurt the U.S. more than help it. They fear job losses, reduced trade, and economic instability.

Markets React as Global Tensions Rise

Financial markets worldwide have felt the shock. U.S. stock prices fell sharply. Other global markets followed the downward trend.

With the U.S. GDP at $27.97 trillion and China’s at $18.56 trillion, the trade war involves economic giants. Germany, with $4.7 trillion GDP, also stands affected.

These countries have the economic strength to withstand and counterbalance the impact of tariffs.

Nigeria Faces Indirect Fallout

Nigeria, however, lacks such resilience. As the global economy slows, crude oil prices may fall. This could slash Nigeria’s oil revenue.

To cushion this impact, Nigeria must urgently build a self-reliant economy. The country needs to manufacture goods locally for both local use and export.

Industrial Sectors Need Immediate Revival

The crude oil refining sub-sector shows promise. Yet, Nigeria must do more. The steel plant in Ajaokuta remains inactive since 1979.

Originally designed to produce liquid steel from iron ore, Ajaokuta could have supported Nigeria’s industrial growth. Instead, it remains a wasted investment.

Nigeria’s textile industry also collapsed. Once a booming employer, it now depends heavily on imports. Nigeria spends $4–$6 billion annually on imported textiles, mostly from Asia.

Government Must Take Action

The Federal Government must move beyond rhetoric. It should create business-friendly policies and reduce production costs.

Electricity is a major issue. Power shortages and generator costs add nearly 40% to production expenses. This drives businesses out of Nigeria.

From Consumption to Production

Nigeria must shift from importing to producing. No economy thrives on consumption alone.

Nations like China, Canada, and the EU stand firm in trade wars because they produce what they consume. Nigeria must do the same.

True economic strength lies in self-sufficiency. In times of global tension, producing nations protect their economies. Nigeria must aim to become one.