…Nigeria, over the years has maintained a trade relationship with the U.S, with exports totaling N931 billion in 2024, predominantly from crude oil sales.
…Nigeria’s crude sale to U.S refineries could also tank, while existing trade imbalances may be further exacerbated considering that Nigeria imposes a 27% tax in U.S goods
THUR APRIL 03 2025-theGBJournal| U.S President Donald Trump Wednesday imposed a 14% tariff on Nigerian exports, while announcing what he says is ”reciprocal tariff” on all of its major trading partners (187 countries) with the exemption of Russia.
The Trump tariff is described as the largest peacetime tax hike in U.S history, with devastating implications for developing nations and Nigeria in particular. It is also viewed as new global trade war.
Nigeria, over the years has maintained a trade relationship with the U.S, with exports totaling N931 billion in 2024, predominantly from crude oil sales.
However, the new U.S tariff on Nigeria exposes the country to a raft of effect including the potential reduction in demand for Nigerian exports, and impact on sectors that depend heavily on U.S trade.
Nigeria’s crude sale to U.S refineries could also tank, while existing trade imbalances may be further exacerbated considering that Nigeria imposes a 27% tax in U.S goods.
The Federal Government has not responded to the new tariff measures but a close source at the Presidency told theG&BJournal that the President Bola Tinubu administration is ”studying the tariff measure” and will make a statement as soon as possible.
Meanwhile, Trump’s 25% tariffs, announced last week, on imported vehicles to the U.S have taken effect while countries mostly impacted by the tariff including China, Canada, Australia, as well as the European Union (EU) are considering retaliatory measures.
The Canadian Prime Minister Mark Carney said his country will today unveil a full set of countermeasures.
China has also vowed big countermeasures while urging the U.S to immediately cancel what it describes as a ”unilateral tariff measures.”
The EU is also preparing further countermeasures against the Trump tariff. The European Commission President Ursula von der Leyen said the tariff is a ”major blow” to the world economy.
Global markets are bleeding already. Asia-Pacific markets fell after the tariff announcement.
The Japanese market led losses in Asia as the Nikkei 225 plunged 2.98%. The Hang Seng Index fell 1.56% while India’s Nifty 50 dropped 0.25%.
In the U.S, the Dow crashed over 800 points while European markets brace for a dramatic fall today.
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