Nigeria and Africa face growing economic pressures as US President Donald Trump introduces new tariffs. Starting tomorrow, the US will impose a 25% tariff on imports from Mexico and Canada, and a 10% tariff on Chinese goods.
In retaliation, Canadian President Justin Trudeau announced that Canada will impose tariffs on “$155 billion worth of American goods,” including $30 billion immediately and $125 billion in 21 days.
Mexican President Claudia Sheinbaum said, “I have instructed my economic secretary to put together a response that included both retaliatory tariffs and other measures in defence of Mexico’s interests.”
China has vowed to challenge the tariffs, with Reuters reporting it will seek action through the World Trade Organization, claiming the tariffs “seriously violate” WTO rules.
Trump’s tariff actions aim to address illegal immigration and drug trafficking, while boosting US manufacturing. The White House said the tariffs will “curb the flow of undocumented immigrants and illicit drugs,” and “raise federal revenue.”
For Nigeria and Africa, the economic impact is significant. Trump’s policies present three key threats: an oil glut caused by expanded US domestic oil production, his proposal to impose tariffs on oil and gas imports, and the threat to Nigeria’s oil-dependent economy.
Trump also warned tariffs will increase, saying, “The time for negotiation has passed.” He proposed additional tariffs on steel, aluminium, and copper, materials sourced from Nigeria and other developing countries.
The African Growth and Opportunities Act (AGOA), which grants African nations preferential access to the US market, is also at risk. Trump has shown little interest in renewing the agreement, which expired last year.
The tariffs could also affect “African Shops” in the US, a sector worth over $15 billion annually. These shops mainly trade agricultural products from Africa, with Nigeria being a major supplier.
At present, Nigeria and other African nations have not responded to these developments.
