The United States government has defended President Donald Trump�s decision to impose a 14 per cent tariff on Nigerian exports, citing trade barriers created by Nigeria’s restrictions on 25 categories of American goods. The new tariffs, announced under what Trump termed �Liberation Day� trade measures, are affecting nearly all countries, including Nigeria. �
According to the Trump administration, Nigeria applies an average tariff of 27 per cent on American imports, which they have labelled as an example of �unfair dealing.� The US government argues that these import bans significantly limit access to the Nigerian market for American businesses, particularly in sectors like agriculture, pharmaceuticals, and consumer goods, leading to considerable financial losses. �
A fact sheet released on Monday by the United States Trade Representative (USTR) elaborated on the rationale behind the tariffs. The USTR highlighted Nigeria�s restrictive policies against US exports, specifically mentioning the food and pharmaceutical sectors. “Nigeria�s import ban on 25 different product categories impacts U.S. exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods. Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit U.S. market access and reduce export opportunities,” the USTR stated. The agency further asserted that these policies create substantial trade barriers that result in lost revenue for American businesses seeking to expand within the Nigerian market. �
Trump�s comprehensive tariff policy has triggered significant global economic repercussions. Stock markets across the U.S., China, the U.K., India, and various other nations experienced sharp declines on Monday as a direct result of the announcement. This global financial instability led to the world�s top 500 billionaires losing a collective $208 billion in a single day, marking the fourth-largest one-day drop in the history of the Bloomberg Billionaires Index and the most severe since the peak of the COVID-19 pandemic. �
In response to the US tariffs, both China and Canada have announced their own countermeasures. Beijing has imposed a 34 per cent tariff on American goods and has also restricted the export of crucial resources, including rare earth elements, pharmaceuticals, and food products, to the U.S. �
Meanwhile, the Nigerian government, led by President Bola Tinubu, is reportedly considering a significant overhaul of its economic strategy in reaction to the 14% tariff imposed on Nigerian exports by the United States. This tariff, a consequence of the escalating trade dispute between the two nations, poses a threat to Nigeria�s $6 billion annual exports to the U.S., potentially exacerbating existing economic challenges such as high inflation and a weakened naira. Nigeria�s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has acknowledged the serious economic implications of the new U.S. tariff and has expressed concerns regarding its potential negative impact on the country.
