US President Donald Trump has criticized the 14% reciprocal tariff imposed on Nigerian goods entering the United States, marking the implementation of the highly anticipated “Liberation Day” tariffs.
Trump previously stated that countries would face tariffs set at half the level they impose on US imports, with a minimum tariff rate of 10%. This calculation, according to the White House, takes into account both non-monetary trade barriers and currency manipulation.
The 14% tariff on Nigerian exports to the US is in response to Nigeria’s 27% tariff on US goods, as Trump highlighted.
These new tariffs, which affect 185 countries, have brought an end to months of uncertainty, causing volatility in stock markets across the US, Europe, and Asia.
The tariff move is part of a broader escalation in a global trade dispute, with additional plans to implement a 25% tariff on all foreign-made vehicles later this week.
Trump set a baseline tariff of 10% for all countries, increasing duties for certain nations he deemed problematic. For example, countries like Lesotho face as much as a 50% levy on their exports to the US.
When announcing the tariffs, Trump noted that he could have imposed even higher rates to match the tariffs other countries charge the US, but he chose not to, as it would have been difficult for many nations unwilling to engage in such measures.
The 25% auto tariffs are set to take effect tomorrow as originally planned.
Reports from Vanguard have raised concerns that Nigeria’s exports to the US, valued at N4.59 trillion, could be negatively impacted by these new tariffs.
However, David Adonri, Vice Chairman of Highcap Securities, suggested that American consumers might bear the brunt of the tariff increase if Nigerian goods exported to the US have high price elasticity.
“President Trump is raising tariffs to reduce imports and stimulate domestic production,” Adonri explained. He also indicated that Nigeria’s exports, which mainly consist of tropical agricultural products, might not be significantly impacted since trade between Nigeria and the US is not substantial.
Adonri added that with the increasing volume of crude oil imports by the Dangote Refinery, the trade balance could now favor the US. “If Nigerian exports to the US are highly elastic, the additional cost from the tariff will likely be passed on to American consumers,” he concluded.
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