How Trump’s tariff increase will affect Nigerian exports – FG reveals | READ DETAILS
The Federal Government of Nigeria, has revealed that the tariff increase by the president of the United States, Donald Trump on foreign goods, will adversely affect Nigerian exports.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, in a statement he issued in Abuja on Sunday, expressed worry that the increment could potentially weaken the competitiveness of Nigerian products in the U.S. market and destabilise businesses in the non-oil sector, affecting both price competitiveness and market access.
The minister said;
“Nigeria’s exports to the United States in the last two years have consistently ranged between $5 and $5–6 bn annually.
“A significant portion—over 90 per cent —comprises crude petroleum, mineral fuels, oils, and gas products. The second-largest export category, accounting for approximately 2–3 per cent, includes fertilisers and urea, followed by lead, representing around one per cent of total exports (valued at approx. $82m).
“Nigeria also exports smaller quantities of agricultural products such as live plants, flour, and nuts, which account for less than two per cent of our total exports to the U.S.
“While oil has long dominated Nigeria’s exports to the US, non-oil products—many previously exempt under AGOA—now face potential disruption.
“A new 10 per cent tariff on key categories may impact the competitiveness of Nigerian goods in the U.S. For businesses in the non-oil sector, these measures pre-destabilise challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda.
“SMEs building their business models around AGOA exemptions will face the pressures of rising costs and uncertain buyer commitments.
“This development strengthens Nigeria’s resolve to boost its non-oil exports by strengthening quality assurance, control, and traceability in Nigerian exports to meet global standards and improve market acceptance in more economies across the globe.”
Recall that Trump had last Friday, announced that countries seeking to sell goods to the United States would now face taxes as high as 50 per cent.
The announcement, made during a ‘Make America Wealthy Again’ event in the Rose Garden, marked a dramatic shift from decades of free-trade orthodoxy that had underpinned the global economy since World War II.
This has however been condemned by world bodies and economic experts.
