Nigeria monitors U.S. trade tariffs amidst shifting global economic policies

As the United States intensifies its trade policies under President Donald Trump, Nigeria finds itself among the 48 nations facing a trade deficit with the U.S., reinforcing the need for strategic economic positioning in a rapidly evolving global trade environment.

The development comes as President Trump launches a new wave of tariffs, targeting major U.S. trade partners, including Canada, Mexico, and China.

Effective February 4, 2025, the U.S. government will impose: 25% tariffs on all imports from Canada and Mexico and 10% tariffs on Canadian oil exports and Chinese goods.

The White House cited concerns over illegal immigration and the influx of fentanyl into the U.S. as key reasons for the tariff policy shift.

The retaliation was swift—Canadian Prime Minister Justin Trudeau announced matching 25% tariffs on U.S. imports worth C$155 billion, while Mexico is reviewing similar countermeasures. China has also vowed to target U.S. electronics and apparel exports in response.

While Nigeria is not directly affected by the latest U.S. tariffs, its trade relationship with America is under close scrutiny.

READ ALSO: FG to launch new SME loan initiative in collaboration with FCMB

According to 2024 U.S. trade data: Nigeria exported $5.29 billion worth of goods to the U.S.; Nigeria imported $3.88 billion in goods from the U.S.

This resulted in a trade surplus of $1.4 billion in Nigeria’s favor.

Total bilateral trade for 2024 (as of September) stood at $9.1 billion.

In comparison, Nigeria recorded a trade surplus of $3.1 billion in 2023, exporting more to the U.S. than it imported.

Trade volumes between Nigeria and the U.S. have declined by 73% over the past decade, mainly due to the United States’ drastic reduction in crude oil imports from Nigeria.

A historical review shows that in 2011, total trade was $74 billion, with Nigeria enjoying a $14 billion trade surplus. Between 2005 and 2014, total trade reached $281.7 billion, with Nigeria maintaining a massive $200.2 billion surplus.

Despite this sharp drop, the U.S. remains a critical trade partner for Nigeria, contributing significantly to foreign direct investment (FDI) in petroleum, mining, and wholesale trade sectors.

Additionally, Nigeria benefits from the African Growth and Opportunity Act (AGOA), which provides preferential access to the U.S. market for specific Nigerian products.

Reacting to the U.S.-Canada tariff dispute, Minister of Industry, Trade, and Investment, Mrs. Jumoke Oduwole, stated that Nigeria remains unshaken by President Trump’s trade policies.

Meanwhile, Sunday Dare, Special Adviser on Media and Public Communications to President Bola Tinubu, weighed in on the escalating global trade tensions, warning that the effects “will reverberate around the world”.

“There is a lesson in all of this for us as a country,” Dare emphasized.

“We are witnessing a new movement: America First. Canada First. It’s time for Nigeria First! Let’s put Nigeria first no matter what.”

As global trade policies shift, economic analysts suggest that Nigeria must take proactive measures to revitalize and expand its trade relations with the U.S. Restoring trade volumes to pre-2020 levels could significantly benefit Nigeria’s economy by:

By leveraging its competitive advantages and fostering strategic economic partnerships, Nigeria can strengthen its position in the evolving global trade landscape and ensure sustainable economic growth.