Posted Thu, Apr 17, 2025 9:03 PM

Strategic Implications of US Reciprocal Tariffs for the Nigerian Economy

The re-emergence of Donald Trump as U.S. President ushered in a renewed "America First" policy, emphasising protectionism and unilateralism over multilateral diplomacy. Central to this shift is the introduction of "reciprocal tariffs, a formula-based strategy aimed at correcting trade imbalances by imposing higher tariffs on countries with surpluses against the U.S. In Nigeria’s case, the US announced a 14 percent tariff, reflecting Nigeria’s trade surplus with the US and its existing import duties on American goods, which the US estimated to be 27 percent. Declining U.S. multilateralism and rising Chinese influence in Africa create a complex geopolitical context.U.S. tariffs on Nigerian goods have historically been low. The policy could disrupt Nigeria–U.S. trade relations and economic indicators. Trump's approach, though intended to balance trade, has sparked global criticism for oversimplifying complex trade dynamics. For Nigeria, the new U.S. posture demands a reassessment of its foreign trade, security, and development strategies to mitigate potential adverse impacts of the declining American multilateralism in the world.