Defiant US President Trump displaying new trade tariffs as it affects many economies
Strong indications have started to suggest that with the recent turn of events where the USA President, Donald Trump has raised import tariff for US-bound goods, Nigerian exporters may need to explore alternative markets or renegotiate trade agreements with the U.S.
Trouble started earlier this week when U.S. President Donald Trump, imposed a 14% tariff on Nigerian exports to the United States as part of his broader trade policy aimed at enforcing reciprocal tariffs on global partners. The announcement, made during a White House event called “Liberation Day,” signals a dramatic shift from previous free-trade policies and is expected to impact several African economies, including Nigeria, Ghana, and Ethiopia.
Analysts say for Nigeria, this tariff hike comes at a challenging time as the country works to diversify its economy beyond crude oil exports as U.S. trade policies are grossly becoming more protectionist.
Economic analysts warn that African countries must adapt swiftly or risk losing access to the world’s largest consumer market. The Nigerian government may need to reconsider its tariff policies on U.S. goods to avoid further retaliatory measures.
Already this policy has killed the spirit of the African Growth and Opportunity Act (AGOA), which previously provided African nations with duty-free access to the U.S. market. Without renegotiation, African exporters may struggle to maintain their market share in the U.S.
According to the National Bureau of Statistics (NBS), Nigeria’s trade with the U.S. amounted to N31.1 trillion between 2015 and 2024, with imports accounting for N16.4 trillion, or 8.7% of Nigeria’s total exports. However, with the U.S. implementing this 14% tariff, Nigerian businesses exporting goods to America will now face higher costs.
The U.S. government justifies this move by citing Nigeria’s existing 27% tariff on American goods. Trump’s administration argues that the new tariff is necessary to create “fair trade” and protect U.S. industries.
African Economies Under Pressure.
Nigeria is not the only African nation affected by the policy. Other countries on the list include:
– Mauritius – Previously imposed an 80% tariff on U.S. goods; the U.S. will now apply a 40% tariff on Mauritian exports.
– Ghana and Ethiopia– Imposed tariffs of 17% and 10% respectively; the U.S. will respond with matching tariffs.
– Algeria – 59% tariff on U.S. goods; the U.S. will impose a 30% tariff in return.
-Kenya– 10% tariff on U.S. goods; the U.S. applies a matching 10% tariff.
The Global Trade Landscape
Trump’s reciprocal tariff policy affects more than 50 countries, including major economies like China, India, Japan, and the European Union. Under this new framework, the U.S. imposes tariffs equivalent to half of the rates these countries apply to American exports.
For instance:
– Vietnam – 90% tariff on U.S. goods; the U.S. now imposes 46%.
– Bangladesh – 74% tariff on U.S. goods; the U.S. responds with 37%.
– China – 67% tariff on U.S. goods; the U.S. imposes 34%.
– South Africa– 60% tariff on U.S. goods; the U.S. applies 30%.
– European Union – 39% tariff on U.S. goods; the U.S. imposes 20%.
Trump has framed these tariffs as a necessary move to revive American manufacturing and force foreign markets to open up to U.S. goods. He declared, “We will supercharge our domestic industrial base, we will pry open foreign markets, and break down foreign trade barriers.”
