As part of a revised U.S. trade strategy under President Donald Trump, a 14% tariff has been imposed on Nigerian exports, effective April 2, 2025. 1 Officially justified by the U.S. as a reciprocal measure against Nigeria's alleged 27% tariffs on American goods, this policy primarily targets Nigeria's vital crude oil and mineral fuel sector – representing over 90% of its exports to the U.S. – but also jeopardizes gains made by non-oil sectors under the African Growth and Opportunity Act (AGOA). The move has triggered significant concern among Nigerian officials, like Trade Minister Jumoke Oduwole, over potential job losses and decreased export revenues, while simultaneously being framed domestically as a catalyst for accelerating Nigeria's economic diversification beyond oil dependency. Beyond Nigeria, the tariff introduces potential inflationary pressure on U.S. consumers and strains the diplomatic relationship, necessitating urgent bilateral consultations. In response, Nigeria is actively seeking alternative markets across Asia, Europe, and within the continent through the African Continental Free Trade Area (AfCFTA), while also exploring avenues for dispute resolution via the World Trade Organisation.
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