U.S. Tariff Bombshell Triggers Alarm in Nigerian Markets

Nigeria is facing growing concern over new import tariffs imposed by the United States on several African nations, including Nigeria, as part of a broader trade policy shift by former U.S. President Donald Trump, who has returned to office in 2025.

The new 15% tariff on select Nigerian exports to the U.S. is expected to affect sectors such as agro-processing, textiles, and light manufacturing, potentially leading to increased prices, reduced export competitiveness, and job losses.

“This move will hurt small exporters the most,” said Olufemi Adetunji, a Lagos-based economist. “Nigeria’s economy is already under pressure from inflation and currency instability. These tariffs could make things worse.”

The policy, announced under the guise of protecting American industries, has triggered criticism from African leaders and trade experts who say it contradicts long-standing partnerships and agreements under the African Growth and Opportunity Act (AGOA).

In response, Nigeria’s Ministry of Trade and Investment said it is engaging with U.S. officials to seek exemptions and explore alternative trade routes, while urging Nigerian producers to diversify markets and boost local demand.

The Nigerian Manufacturers Association (NMA) has called for urgent government intervention, warning that the tariffs could discourage U.S.-Africa trade and limit post-pandemic recovery.

With inflation still in double digits and the Naira's volatility in the FX market, the new U.S. trade barrier could have ripple effects on employment, industrial output, and foreign reserves.

As the global economic climate tightens, Nigeria and its trading partners may need to reconsider regional trade strategies to buffer against rising protectionism.