Why Trump’s Tariff Policy Might be Hurting Nigerian Exports – FG

The Federal Government has raised concerns over the potential impact of new tariffs imposed by former U.S. President Donald Trump, warning that the policy shift could put Nigerian exports especially non-oil goods, at a serious disadvantage in the American market.

In what has been described as a major shake-up in global trade dynamics, the Trump administration reintroduced steep tariffs some reportedly as high as 50% on goods entering the United States. 

Though framed as a bid to “Make America Wealthy Again,” the decision is already sparking fears among export-dependent countries like Nigeria.

Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, addressed the issue in a statement released on Sunday, offering the government’s first official response days after the announcement. According to her, the move could undermine the competitiveness of Nigerian products in one of its most important export destinations.

“Over 90 percent of Nigeria’s exports to the U.S. consist of crude oil, mineral fuels, and related products,” Oduwole stated. “But the non-oil segment, though smaller, is equally critical to our economic diversification agenda.”

That non-oil segment includes fertilisers, lead, and a handful of agricultural goods like flour, nuts, and live plants—many of which had previously benefitted from preferential trade agreements like AGOA (African Growth and Opportunity Act). The new tariffs threaten to erase those advantages.

The minister explained that with tariffs now placed on key product categories, Nigerian businesses may face increased costs and reduced access to U.S. markets. For small and medium enterprises that have built their export models around tariff exemptions, the development could be especially destabilising.

“These businesses will face challenges maintaining price competitiveness. More so, they may struggle to keep their international partners committed amidst such sudden changes,” she warned.

Economists have echoed similar concerns, pointing out that higher tariffs are likely to drive up prices for American consumers while reducing the demand for imported goods, including Nigerian oil. This, they say, could ripple through Nigeria’s economy, dampening industrial activity and weakening foreign exchange earnings.

The U.S. has traditionally been one of Nigeria’s top trading partners, with exports averaging between $5 and $6 billion annually in recent years. Any disruption to that flow, experts argue, could have serious implications, not just for revenue but for job creation, particularly in the country’s growing non-oil sector.

Still, the government insists this setback has only deepened its commitment to strengthening non-oil exports. According to Oduwole, Nigeria is now focused on improving quality standards, traceability, and compliance with global regulations in a bid to access new markets beyond the U.S.

“We must ensure Nigerian products meet global standards, not just to survive this new tariff regime, but to thrive in an increasingly competitive global economy,” she added.

As global trade continues to shift, Nigerian businesses now find themselves at a crossroads. 

The challenge ahead isn’t just about navigating tariffs, it’s about reimagining export strategies that are resilient, diversified, and future-proof.