Nigeria Acknowledges 14% U.S. Tariff Hike, Vows to Soften Blow as Trade Tensions Rise

The Federal Government has formally acknowledged the recent 14% tariff imposed by the United States on Nigerian exports, describing the development as a challenge with serious implications for non-oil sectors, while also positioning it as a call to accelerate economic diversification and deepen trade resilience.

In a statement issued on Sunday and signed by the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the government said that although crude oil has historically dominated Nigeria’s exports to the U.S., the new tariffs could deal a significant blow to non-oil exports—many of which had enjoyed exemptions under the African Growth and Opportunity Act (AGOA).

The new U.S. tariff regime includes a 10% levy on key non-oil categories, a move the Nigerian government says could undermine the price competitiveness of its goods in the American market, particularly in the value-added and agro-processing sectors.

“For businesses in the non-oil sector, these measures present destabilizing 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,” the statement read.

According to government figures, Nigeria’s total exports to the United States have averaged between $5 and $6 billion annually over the last two years, with over 90% of that made up by crude oil and other mineral fuels. Non-oil products such as fertilizers, urea, lead, and a limited range of agricultural goods—account for less than 5% of the total.

Although the current tariff structure spares oil exports from the full brunt of the hike, Nigeria’s heavy dependence on crude means the indirect effects could still have severe consequences, especially if prices falter amid global uncertainty. More immediately, sectors that had been carving out space in niche, value-driven markets in the U.S. now face setbacks that may be difficult to absorb.

For Nigerian exporters, especially small and medium-sized enterprises, the situation echoes the challenges echoed by businesses in other countries affected by the tariffs. Nigeria’s SME exporters, who’ve invested in meeting AGOA standards, now find themselves shut out of the benefits, facing the consequences of global decisions made without their input or negotiation.

Dr. Oduwole noted that the Tinubu administration is treating the development with pragmatism, not alarm. She said the government is focused on turning the disruption into an opportunity to rethink Nigeria’s place in global trade, strengthen its economic fundamentals, and expand market access beyond traditional Western partners.

She explained that the government is ramping up investments in policy frameworks, trade financing, and infrastructure support to help businesses adapt. Among the measures being intensified are efforts to identify and expand alternative export destinations outside the United States, improve quality control and traceability for Nigerian goods, and advance strategic trade diplomacy to secure more favorable terms in emerging markets.

The government emphasized that the United States remains a “valued trade and investment partner” and noted that Nigeria is already in consultations with U.S. trade representatives and the World Trade Organization (TO) to address the implications of the new tariffs. The statement referenced a March 26 meeting between the U.S. Ambassador and Minister Oduwole, during which both parties reaffirmed their commitment to a strong bilateral trade relationship.

Nigeria is also reemphasizing its commitment to regional trade initiatives, especially the African Continental Free Trade Area (AfCFTA), which it believes can offer a long-term buffer against volatility in Western markets. The government said it is pushing for accelerated implementation of the AfCFTA and leveraging platforms like the Pan-African Payment and Settlement System (PAPSS) to boost intra-African commerce.

While the immediate impact of the tariffs may not drastically reduce Nigeria’s trade volumes with the United States, especially in oil, the broader implications are hard to ignore. The concern is less about figures and more about positioning—how Nigeria and other African countries find themselves at the mercy of unilateral global economic decisions that can unravel years of policy planning and export strategy.

The current situation was triggered by a sweeping trade directive from U.S. President Donald Trump, who declared what he called a “Liberation Day” by slapping tariffs on all of America’s trading partners. The move, intended to correct what Trump called “chronic trade imbalances,” sent global markets into a panic. Investors pulled back amid fears of retaliatory measures, which came swiftly from countries like China, which responded with a 34% tariff on U.S. imports.

Nigeria’s 14% tariff—relatively modest compared to the potential 28% penalty calculated based on its trade surplus with the U.S.—was described by Trump as a “concessionary” gesture. But whether that gesture translates into any real cushion for Nigerian businesses remains to be seen.

For now, the federal government is choosing to focus on adaptation and reform. Dr. Oduwole said the administration’s response is rooted in long-term strategy, not short-term panic.

“We are approaching this moment with pragmatism and purpose—turning global trade challenges into opportunities to grow our non-oil export footprint and build a more resilient economy,” she said.

Still, for exporters, the road ahead will be anything but smooth. Many had tailored their operations to exploit AGOA’s preferential access to the U.S. market. Now, with that safety net suddenly weakened, they must either absorb the cost or pass it on to consumers—both unattractive options in a fiercely competitive environment.