The Editorial Board
The Nigerian government is on a collision course with the United States over its high import tariffs, particularly on American-made cars. President Donald Trump’s latest directive on “Fair and Reciprocal Tariffs” could see Nigeria facing severe economic consequences if it does not align its trade policies with global standards.
Under current Nigerian law, imported American vehicles are subject to a staggering 50% total tariff—20% import duty plus a 30% National Automotive Council (NAC) levy, VAT, Surcharge (SUR), ECOWAS Trade Liberalization Scheme (ETLS) Levy, Import Adjustment Tax and Administrative Tax.
In contrast, the United States imposes only a 2.5% import duty on passenger cars and 25% on light trucks, regardless of the exporting country. While Nigeria does not currently export significant numbers of vehicles to the U.S., this discrepancy underscores the imbalance in trade policies that Trump’s administration is now targeting. Nigeria could face harsher penalties on other exports under Trump’s policies.
Nigeria’s Exports Could Be the Next Target
Nigeria exports crude oil, liquefied natural gas, agricultural products, and textiles to the U.S., mostly under the African Growth and Opportunity Act (AGOA), which allows duty-free access to the American market.
However, with the Trump administration’s new stance, Nigeria’s preferential trade benefits could be revoked, and higher tariffs could be slapped on key exports, effectively pricing Nigerian goods out of the U.S. market.
The warning signs are clear:
- The U.S. has already targeted other countries that impose high tariffs on American goods, including China and the European Union.
- Trump has publicly stated that African nations taking advantage of low U.S. tariffs should expect payback.
- Nigeria’s non-oil exports are already struggling, and any additional tariffs would further cripple businesses relying on the U.S. market.
Nigeria Must Act—Fast
The Nigerian government must immediately reassess its tariff policies, particularly in sectors where it unfairly burdens American imports, including used and new vehicles. Failure to do so could result in:
- Higher U.S. tariffs on Nigerian crude oil, which accounts for a significant portion of Nigeria’s foreign exchange earnings.
- Restrictions on Nigerian agricultural and textile exports, which rely heavily on the American market.
- A breakdown in trade relations, making it harder for Nigerian businesses to compete globally.
Trump’s trade order is not a bluff—it is a clear and present danger to Nigeria’s economy. The government must engage diplomatically with the U.S. trade office, review its protectionist policies, and negotiate a fairer trade arrangement before retaliation becomes inevitable.
If Nigeria continues on its current path, it may soon find itself locked out of the world’s largest consumer market, facing economic shocks it is ill-prepared to handle. The time to act is now.
