…Says restrictions hurt American exporters as Trump’s tariff regime hits Nigeria with 14% duty
LAGOS — In a rising tide of global trade tensions, the United States has issued a strong rebuke of Nigeria’s protectionist trade policies, particularly the ban on 25 imported items. The U.S. Trade Representative (USTR) has accused Nigeria of erecting “significant trade barriers” that are damaging American commercial interests, especially in agriculture, pharmaceuticals, beverages, and fast-moving consumer goods.
This latest diplomatic standoff emerges barely a week after U.S. President Donald Trump rolled out sweeping tariffs targeting imports from several countries, with Nigeria now facing a 14 percent duty on key export categories—raising fresh concerns over the future of Nigeria-U.S. trade relations.
In a statement posted on X (formerly Twitter), the USTR did not mince words:
“Nigeria’s import ban on 25 product categories—ranging from beef and pork to medicaments and fruit juices—severely limits U.S. market access, undercuts export opportunities, and results in significant revenue losses for American businesses looking to expand into one of Africa’s largest markets.”
The USTR’s statement calls out a trade regime that, while initially justified as part of Nigeria’s economic reform and import substitution drive, is now seen by many international observers as increasingly inward-looking and harmful to bilateral trade growth.
A Longstanding Ban, A New Headache
The banned items—first introduced in 2016 under Nigeria’s Import Prohibition Policy—cover a wide range of consumer goods including:
Frozen poultry, pork, and beef
Refined vegetable oils and fruit juice
Cocoa products and spaghetti/noodles
Medicaments and pharmaceutical waste
Soaps, detergents, sanitary wares, and mosquito repellant coils
Recharge cards, used tyres, and plastic products
While aimed at boosting local industries and reducing the country’s heavy dependence on imports, the policy has inadvertently sparked tension with trade partners, particularly the U.S., which sees the move as arbitrary and inconsistent with international trade norms.
In a further twist, the Nigerian government recently revealed plans to halt the importation of solar panels, signaling a broader protectionist pivot under the guise of promoting local manufacturing and clean energy.
Nigeria Caught in the Crossfire of Trump’s Tariff Blitz
Nigeria’s retaliatory burden from President Trump’s tariff offensive is becoming clearer. Although crude oil—Nigeria’s chief export to the U.S.—remains exempt, non-oil exports are not as fortunate. From fertilizers and urea to agricultural products, the U.S. has slapped a 14 percent tariff, raising questions about the resilience of Nigeria’s already-fragile non-oil export sector.
Speaking on the development, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, acknowledged the economic storm clouds ahead.
“The economic management team is going back to the drawing board. Although oil exports are safe for now, the 14% duty on non-oil exports is concerning. Nigeria needs to explore opportunities in this crisis. If production shifts from countries like Vietnam—currently facing a 46% tariff—we must position Nigeria as a manufacturing alternative,” Edun said.
However, critics argue that Nigeria may be overestimating its readiness. Poor infrastructure, inconsistent policies, and electricity deficits continue to plague the industrial sector—conditions that could undermine any attempt to attract foreign manufacturers.
The Economic Fallout: SMEs, AGOA, and Export Diversification at Risk
Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, painted a stark picture of the consequences for Nigerian exporters, especially SMEs that rely on the African Growth and Opportunity Act (AGOA) exemptions.
“Over 90 percent of Nigeria’s exports to the U.S. are crude petroleum products. The non-oil sector—which includes fertilizers, lead, and agricultural goods—now faces 10–14 percent duties. This puts our diversification agenda at risk,” she said in a statement.
According to the minister, non-oil exports previously shielded under AGOA are now vulnerable, eroding Nigeria’s competitiveness in the U.S. market and discouraging buyer commitments.
Industry analysts warn that this could trigger a chain reaction across sectors:
Rising costs for Nigerian exporters
Loss of market share in the U.S.
Shrinking foreign exchange inflows
A potential spike in unemployment if manufacturing contracts
Despite these risks, Oduwole emphasized that Nigeria would double down on improving the quality and traceability of its exports to meet global standards and expand market reach beyond the U.S.
“This is a wake-up call for Nigeria to enhance its industrial standards and value-added exports,” she added.
Global Trade War: Nigeria Must Choose Strategy Over Sentiment
As tensions escalate between Washington and global trading partners, Nigeria finds itself at a crossroads. While the U.S. seeks to protect its domestic economy through aggressive tariff policies, Nigeria must now decide whether to remain defensive and insular—or embrace a smarter, strategic engagement with global trade rules and partners.
Critics argue that the current policy mix lacks coherence. On one hand, Nigeria seeks to attract foreign investors and boost exports; on the other hand, it implements sweeping bans that alienate trade allies and limit consumer choice. A comprehensive trade review may now be overdue.
Unless Nigeria recalibrates its trade policy with global realities, it risks deeper isolation—and the unintended consequence of reversing modest gains made in its diversification and industrialization efforts.
Reference
Tariff War Escalates: US Slams Nigeria Over Import Ban on 25 Products