By: Omike Matthew
The 14% tariff imposed by President Donald Trump on Nigerian exports poses a serious risk to the $10bn annual trade between Nigeria and the United States. This could disrupt key sectors like oil exports and agriculture. Experts warned that the policy could raise consumer prices, slow manufacturing, hinder international trade, and reduce US demand for Nigerian oil, a major export.
Since 2000, Nigeria has exported about $277bn worth of goods to the US under the African Growth and Opportunity Act (AGOA), with crude oil making up the majority. Currently, Nigeria’s exports to the US average between $10bn and $12bn annually, but this new tariff could drastically impact this trade.
Trump’s decision is part of his broader strategy to address what he sees as unfair trade practices, with the US accusing Nigeria of imposing higher tariffs on US goods. While Trump has exempted energy products like crude oil from tariffs, experts warn that Nigeria’s agricultural exports could suffer. The tariff’s broader effects could lower global production, weakening demand for oil, reducing prices, and impacting Nigeria’s oil revenues.
The tariff also threatens to disrupt global supply chains and could cause inflation, increasing import costs for Nigeria. Analysts predict that while oil exports may not be directly impacted, overall economic challenges, including a weakened naira and rising inflation, could intensify.
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