Fears as rising US-China tariffs crisis may mar massive flow of cheap loans to Africa
There are indications that the continued rise in US-China trade war which is hitting hard on Chinese industrial productivity may soon begin to hobble free-flow of cheap loans to Africa and Nigeria in particular.
It would be recalled that during the recent Forum of China and Africa Countries (FOCAC) in Beijing, Chinese leader, Xi Jinping announced fresh grant of $60bn to some African governments including Nigeria.
Besides, Nigeria in the last more than three years, has amassed several infrastructure development funding deals with Chinese institutions including China EXIM Bank and others.
Already, a new round of US tariffs on Chinese goods has kicked in, the largest yet in the escalating trade war between the economic superpowers.
The US started imposing tariffs on $200bn ($152bn) worth of Chinese products from 12:01 Beijing time (04:01 GMT), in response to what it says are unfair trading practices by China. China retaliated by targeting $60bn of US goods with extra duties. It says the US has started the “largest trade war in economic history”.
The latest move takes the total amount of Chinese imports hit by US tariffs since July up to $250bn. This means about half of all Chinese imports to the US are now subject to these new duties. US companies importing the Chinese products in question will have to pay an additional 10% levy. The US duties apply to almost 6,000 items, making them the biggest round of trade tariffs yet from Washington. They affect handbags, rice and textiles, although some items such as smart watches and high chairs have been exempted. The tax will rise to 25% from the start of 2019, unless the two countries agree a deal.
