Trump’s 14% Tariff Hits Nigerian Exports

The Federal Government of Nigeria has acknowledged that the newly imposed 14% tariff  by US President Donald Trump on Nigerian exports could significantly impact the country’s oil and non-oil trade flows.

This move is expected to disrupt trade relations and weaken the competitiveness of Nigerian products in the U.S. market.

Nigeria’s exports to the United States have averaged $5-6 billion annually in the last two years, with crude oil and mineral fuels accounting for over 90% of this amount. The new tariff could negatively affect the competitiveness of Nigerian goods in the US market and destabilize businesses in the non-oil sector.

Recall that Trump had announced in a decision widely condemned by the European Union and exporting nations that countries seeking to sell goods to the United States would now face taxes as high as 50 per cent.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, expressed concerns that the new tariff on key categories could impact Nigerian goods’ competitiveness in the US market. She stated:

“Nigeria’s exports to the United States in the last two years have consistently ranged between $5 and $5–6 bn annually.

“A significant portion over 90 percent comprises crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, accounting for approximately 2–3 per cent, includes fertilisers and urea, followed by lead, representing around one per cent of total exports (valued at approx. $82m).

“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than two per cent of our total exports to the U.S.

“While oil has long dominated Nigeria’s exports to the US, non-oil products, many previously exempt under AGOA now face potential disruption.

“A new 10 per cent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. For businesses in the non-oil sector, these measures pre-destabilise challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.

“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments.

“This development strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance in more economies across the globe.”

Economic experts warn that the policy could raise prices of goods and services for consumers, weaken the standard of living, slow down manufacturing activities, hinder international trade and consequently weaken demand for Nigerian oil in the US, one of its key markets.

The announcement, made during a ‘Make America Wealthy Again’ event in the Rose Garden, marked a dramatic shift from decades of free-trade orthodoxy that had underpinned the global economy since World War II.

The Federal Government is working to cushion the impact and fast-track efforts toward economic diversification. The Minister of Industry, Trade and Investment emphasized the need to boost non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards.