Trump’s BRICS tariff threat: A double-edged sword for Nigeria’s economy

The Manufacturers Association of Nigeria Export Promotion Group (MANEG) views President Donald Trump’s threat of additional 10 percent trade tariffs on countries aligning with BRICS nations as both a potential opportunity and a significant risk for Nigeria.

While it could boost intra-African trade through the African Continental Free Trade Area (AfCFTA), MANEG warns it could also harm key manufacturing and agricultural sectors.

Dr. Benedict Obhiosa, Executive Secretary of MANEG, shared these insights in a recent chat with press.

Last week, President Trump threatened new tariffs on countries aligning with BRICS nations – comprising Brazil, Russia, India, China, and South Africa – citing “Anti-American policies of BRICS.”

Nigeria formally became the ninth BRICS partner country in January 2025, a status introduced at the 16th BRICS Summit in October 2024.

According to data from the National Bureau of Statistics (NBS), Nigeria’s trade with BRICS nations reached N5.41 trillion in the first quarter of 2025 (Q1’25), significantly higher than its N1.54 trillion in exports to the United States during the same period.

Obhiosa believes Nigeria can leverage this challenge to explore new export markets and trade partnerships, while emphasizing value addition to raw materials.

“These challenges can also serve as opportunities for Nigeria to reassess and strengthen its economic strategies and policies,” he stated.

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“Nigeria can boost intra-African trade by prioritizing the African Continental Free Trade Area (AfCFTA), exploring new export markets and trade partnerships, and emphasizing value addition to raw materials, which benefits the economy by creating jobs.”

He added, “Through the implementation of these strong strategies, Nigeria can build a resilient, self-sufficient economy that improves its global position and can turn the challenges of tariffs into opportunities for economic growth and sustainability.”

However, Obhiosa also cautioned that the implementation of these threatened tariffs by the US could severely disrupt existing trade relations and negatively impact vital sectors of the Nigerian economy, particularly agriculture and manufacturing.

“The tariffs may strain the relationship with the US, potentially disrupting the import of essential goods like pharmaceuticals and agricultural products,” Obhiosa explained.

“Increased tariffs could create uncertainty in the business environment, prompting foreign investors to reconsider their investments in Nigeria. Additionally, higher costs for importing necessary technology for production might lead to increased economic strain.”