Trump imposes 14% Tariff on Nigerian Goods as ‘Liberation Day’ Trade Policy takes effect

U.S. President Donald Trump has implemented a 14% reciprocal tariff on all Nigerian exports to the U.S. as part of the much-discussed “Liberation Day” trade measures.

Trump stated that tariffs would be set at half the rate each country charges the U.S., with a minimum rate of 10%. According to him, Nigeria imposes a 27% tariff on U.S. goods, leading to the 14% duty on Nigerian exports.

The new tariffs, which apply to 185 countries, have ended months of uncertainty that had affected stock markets in the U.S., Europe, and Asia. The policy is the latest escalation in Trump’s trade war, which also includes a 25% tariff on all foreign-made vehicles set to take effect this week.

Trump imposed a baseline 10% tariff on all nations but introduced higher duties for certain countries he referred to as “bad actors,” with Lesotho facing levies as high as 50% on its exports. While unveiling the new trade policy, Trump noted that he could have imposed full reciprocal tariffs matching each country’s rates on the U.S. but chose not to.

“The tariffs will not be fully reciprocal,” he said. “I could have done that, yes, but it would have been tough for a lot of countries who didn’t want to do that.”

According to reports, Nigeria’s N4.59 trillion worth of exports to the U.S. may be at risk due to the tariff increase. However, Mr. David Adonri, Vice Chairman of Highcap Securities, believes American consumers will bear the extra costs if Nigerian exports have high price elasticity of demand.

“President Trump is increasing tariffs to discourage imports and boost domestic production. The increase in tariffs may not significantly impact Nigeria’s exports to the U.S. since they are mainly agricultural products,” Adonri stated.

He added that the trade balance might now favor the U.S., considering Nigeria’s growing crude oil imports from the Dangote Refinery. “If Nigerian goods exported to the U.S. are highly price elastic, American consumers will absorb the extra costs from the tariff hike,” he concluded.