United States President Donald Trump’s reciprocal tariffs on goods are putting Nigeria’s exports to the United States at risk, especially petroleum products, which are the country’s main exports.
Trump’s reciprocal tariffs on goods from several countries, including Nigeria, come as part of a trade policy aimed at addressing currency manipulation and trade barriers.
The directive introduced stricter, specific country tariffs designed to increase taxes on American goods.
Nigeria’s exports to the U.S. will now face a 14 per cent tariff, compared to the 27 per cent that the U.S. government says it receives from Nigerian imports.
Nigeria primarily sells crude oil ($4.73 billion worth), petroleum gas, and nitrogen-based fertilizers to the U.S., while the U.S. mainly exports cars, refined petrol, and wheat to Nigeria.
These tariffs come at a time when the U.S. has just started buying jet fuel from Nigeria’s Dangote Refinery, with six ships delivering 1.7 million barrels this month.
Trade between Nigeria and the U.S. from 2010 to 2024 (10 years) amounted to ₦31.1 trillion, according to the Nigerian Bureau of Statistics (NBS). During this period, total imports were ₦16.4 trillion, making up 8.7 per cent of Nigeria’s global exports.
Trump described the move as the beginning of a new era of “fair trade”, vowing to “supercharge America’s industrial base” and push foreign markets to open up, accusing them of blocking U.S. goods for years.
“This is one of the most important days in American history. We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers,” Trump stated.
The president also announced a national economic emergency to introduce the tariffs, which are expected to generate hundreds of billions in revenue each year.
The Trump administration’s new tariff policy will also affect several African countries, including Ghana, Ethiopia, and Mauritius, which have been listed for tariff adjustments by the White House.
The U.S. tariffs vary widely across countries. Nations like Algeria face a 59 per cent tariff (discounted to 30 per cent) and Lesotho 99 per cent (discounted to 50per cent). Nigeria’s 27 per cent rate is relatively lower. Countries like Oman, Uruguay, and Kenya face a flat 10 per cent tariff with no discount.
This comes at a time when Nigeria is working to expand its economy and export more than just crude oil. To avoid losing access to the world’s largest consumer market, Nigeria may need to adjust its tariff policies or negotiate new trade agreements, say analysts.
