U.S. President Donald Trump has introduced new tariffs in a significant escalation of global trade tensions, declaring Wednesday as “Liberation Day” during a public address.
Trump outlined a new policy of “reciprocal tariffs,” meaning the U.S. will impose tariffs on imports that are roughly half of what those countries charge on American goods. Nigeria is among the countries affected, with a new 14% tariff on its exports to the U.S., compared to the 27% tariff Nigeria applies to U.S. goods.
Impact on Nigeria’s Trade
In 2024, Nigeria exported goods worth ₦931 billion to the U.S., with crude oil being its primary export. During the same period, Nigeria imported ₦1.05 trillion worth of American goods, making the new tariff a critical factor in the trade relationship.
The new U.S. tariff system will significantly impact Nigeria’s export sector, setting the stage for new trade conditions in the years ahead.
Global Trade Imbalance and Tariff Rates
During his announcement, Trump displayed a chart showing trade imbalances with various nations. He pointed out that China imposes a 67% tariff on U.S. goods, while the U.S. will now charge a 34% tariff on Chinese imports.
Other countries facing new tariffs include:
- European Union – 20%
- Vietnam – 46%
- Taiwan – 32%
- Japan – 24%
- India – 26%
- South Korea – 25%
- Thailand – 36%
- Cambodia – 49%
These new rates mark a major shift in U.S. trade policy as the administration seeks better trade terms and a stronger economic position.
Executive Orders and Economic Impact
Speaking from the White House Rose Garden, Trump signed two executive orders aimed at eliminating what he called unfair trade practices.
The first order targets “the de minimis loophole” with China, which previously allowed some Chinese exports to bypass import taxes. The second order formalizes the new reciprocal tariffs, including a 25% tariff on all imported cars and tariffs ranging from 10% to 49% on goods from foreign nations.
Trump asserted that these measures would generate “$6 trillion in investments” for the U.S. economy.
However, economic experts warn that tariffs often lead to higher costs for American businesses and consumers rather than directly affecting foreign exporters. Some analysts have labeled the move as one of the largest “tax hikes” in U.S. history, raising concerns about rising prices on imported goods.
The European Union, which will now face a 20% tariff on its exports to the U.S., has yet to issue an official response. European Commission President Ursula von der Leyen is expected to comment on the matter later today.
