In a bold move, shaking the global economy, U.S. President Donald Trump has reignited his long-standing war on unfair trade. This time, the effects are felt in Nigeria.
Back in a 1988 interview on The Oprah Winfrey Show, a then 42-year-old Trump said, “I’d make our allies pay their fair share.” He accused countries like Japan and Kuwait of taking advantage of America. Fast forward to 2025, and those same words are now shaping U.S. trade policy.
What Just Happened? Trump Drops the Tariff Hammer
On April 2, 2025, Trump announced a new global tariff policy. His goal is to reduce the U.S. trade deficit and bring jobs back home.
Here’s a quick look at what’s changed:
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A 10 percent base tariff on almost all imports
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Up to 145 percent tariffs on goods from countries like China
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China has responded with 125 percent tariffs on U.S. exports
Trump wants to make imported goods more expensive so that Americans buy more local products. He’s also using tariffs as pressure tools on issues like trade, immigration, and national security.
What Are Tariffs?
Tariffs are taxes that governments place on imported goods. They raise the price of foreign products. That makes local products more competitive.
For example, if Nigeria sends ₦100,000 worth of cement to Ghana and Ghana adds a 25 percent tariff, the importer must pay an extra ₦25,000. That makes the cement cost more for Ghanaian buyers or reduces the Nigerian exporter’s profit.
Tariffs can vary based on trade relationships. Countries may give lower rates to their key partners or charge higher rates to protect local industries.
How This Affects Nigeria
Nigeria is Africa’s largest oil producer. About 90 percent of its foreign exchange earnings come from oil exports. Thankfully, U.S. tariffs do not apply to crude oil and gas.
But the story is different for non-oil exports. Nigerian goods like fertilizers, urea, processed foods, and agricultural items now face 10 to 14 percent U.S. tariffs. These goods were previously protected under AGOA (African Growth and Opportunity Act) but are now at risk.
According to the National Bureau of Statistics, Nigeria earned ₦4.49 trillion from oil and energy exports to the U.S. in 2024. Most of that trade will continue without new taxes. However, the non-oil sector, which Nigeria is trying to grow, may be hit hard.
What Nigerian Leaders Are Saying
Minister of Trade and Investment Dr. Jumoke Oduwole has expressed concern about the impact on Nigeria’s economic diversification efforts.
“While oil has long dominated Nigeria’s exports to the U.S., non-oil products now face potential disruption,” she said.
She warned that the 10 to 14 percent tariffs could hurt Nigerian products in the U.S. market. That could slow growth in value-added industries, Nigeria hopes to expand.
In response, the government has launched a committee to review Nigeria’s 2002 National Trade Policy. The goal is to develop a strategy to protect local businesses and improve competitiveness.
A Possible Silver Lining?
Dele Alake, Minister of Solid Minerals Development, sees opportunity in the crisis. He believes the U.S. tariffs could push African countries to rethink their trade strategies.
“The era of shipping raw materials abroad without adding value must end,” he said. “We must create jobs and build factories right here in Africa.”
He believes African nations must start trading more with each other. By boosting intra-African trade, countries like Nigeria can become less dependent on Western markets.
Final Thoughts
Trump’s tariffs are not just aimed at China or Mexico. They are part of a much broader trade strategy. While Nigeria’s oil trade is safe for now, its growing non-oil sector may face new challenges.
The country must act fast to protect local businesses. That means updating trade policies, supporting exporters, and strengthening regional trade across Africa.
This is a moment of both risk and opportunity.
