President Donald Trump of the United States (U.S.), on Wednesday 2 April, 2025 signed an executive order imposing a 14% tariff on all Nigerian exports to the U. S., marking a significant escalation in his “Liberation Day” reciprocal trade policy.
The move, effective Thursday, 3 April, 2025 aims to address what Trump calls “unfair trade practices,” targeting Nigeria’s 27% average tariff on American goods.
This development alters a trade relationship previously governed by minimal duties under the African Growth and Opportunity Act (AGOA).
Nigeria’s exports to the U.S. are dominated by crude oil, valued at $429 million in January 2025, alongside cocoa, cashew nuts, and animal feed, which faced an average tariff of just 1% under AGOA.
In contrast, the U.S. exports vehicles, machinery, wheat, plastics, and fuels to Nigeria, encountering tariffs as high as 35% on some items.
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The new U.S. tariff replaces the near-duty-free access Nigeria enjoyed, while Nigeria’s existing levies on American goods remain unchanged for now.
For the U.S., this tariff could boost domestic industries by making Nigerian imports less competitive, potentially increasing revenue for the Treasury. However, it risks raising costs for American consumers and businesses reliant on Nigerian oil and agricultural products, possibly fueling inflation.
Retaliatory tariffs from Nigeria could also harm U.S. exporters, particularly in the automotive and agricultural sectors, shrinking their market share in Africa’s largest economy.
Nigeria faces a mixed outlook. The tariff may spur local processing of raw materials like cocoa, reducing reliance on exports and fostering industrial growth. Yet, the immediate impact could be severe, with reduced export earnings threatening an economy already strained by currency depreciation. Trade tensions may deepen if Nigeria retaliates, further complicating bilateral relations.
