Reactions as Trump threatens 10% tariff on Nigeria over BRICS’ alignment

Mixed reactions have trailed the threat by the US President Donald Trump to impose an additional 10% tariff on Nigeria for aligning with the BRICS. Economic Experts however called for caution, urging Nigeria to handle the threat diplomatically to avoid any disruption in its trade activities with the US and members of BRICS. Daily Trust […]

Mixed reactions have trailed the threat by the US President Donald Trump to impose an additional 10% tariff on Nigeria for aligning with the BRICS.

Economic Experts however called for caution, urging Nigeria to handle the threat diplomatically to avoid any disruption in its trade activities with the US and members of BRICS.

Daily Trust reports that President Trump had announced that Nigeria will be among countries facing an additional 10% tariff for aligning with what he described as the “anti-American policies of BRICS.”

The U.S. president made the declaration on Sunday via a post on Truth Social, adding fresh uncertainty to global trade relations.

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Trump’s announcement, which did not elaborate on any specific policy of BRICS, emerged as the group’s meeting was rounding up in Rio de Janeiro, Brazil with President Bola Tinubu participating.

The Brazilian government, on January 17, 2025, announced the formal admission of Nigeria as a partner country of the grouping.

Nigeria became the ninth partner country of BRICS, joining Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan. This partner-country category was created during the 16th BRICS Summit held in Kazan in October 2024.

The BRICS group includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran.

The grouping describes itself as “a political and diplomatic coordination forum for countries from the Global South and for coordination in the most diverse areas.”

BRICS goals include improving economic, political and social cooperation among its members, and “increasing the influence of Global South countries in international governance.”

The Trump administration has said that tariffs announced in April will take effect on August 1, instead of July 9, for countries that have not reached an agreement with the U.S.

In April, Trump announced a 90-day pause on the sweeping tariffs he had imposed on most trading partners.

That pause is due to expire on Wednesday, sparking concern among investors and U.S. trading partners over the implication of the tariffs.

The bloc’s leaders appeared to take aim at Trump’s sweeping tariff policies in a joint statement on Sunday, warning against “unjustified unilateral protectionist measures, including the indiscriminate increase of reciprocal tariffs.”

The leaders voiced “serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules,” warning that the “proliferation of trade-restrictive actions” threatens to disrupt the global economy and worsen the existing economic disparities.

However, Trump in a subtle response warned Nigeria and other countries associating with BRICS to be ready for the 10% additional tariff.

“Any Country aligning itself with the anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump said in a post on Truth Social Sunday evening, stateside.

 

President Tinubu reaffirms commitment to BRICS partnership

At the summit, Tinubu called for a reevaluation of the current global governance structure and the financial and healthcare systems, urging greater equity and inclusion for low-income and emerging economies, particularly in Africa.

The President stated that environmental degradation, the climate crisis, and healthcare inequalities should receive more attention, as they contribute to slowing growth and development.

President Tinubu, invited to the summit by Brazil’s President Luiz Inacio Lula Da Silva, stated that Nigeria supports the BRICS position on the need to focus on collective, fair, and equitable global development, a statement by Bayo Onanuga, Special Adviser to the President on Information & Strategy quoted the President.

President Tinubu said, “Nigeria, therefore, associates with what I have heard today and all that has happened in BRICS. The next issues are financial restructuring and reevaluation of the global structure.”

He noted that environmental degradation, climate crisis, and global healthcare inequalities were shared concerns pertinent to Africa.

“Africa has contributed the least to global emissions but suffers the most,” he added.

President Tinubu emphasised the need for a new path of justice, anchored in fairness, sustainable technology transfer, and accessible financing, so that emerging economies can fully benefit from various initiatives.

“The African continent is creating the path through the African Carbon Market Initiative and the Great Green Wall. We believe that COP-30 will strengthen our resolve to adopt a strategic approach to achieving a healthy global environment.

“Nigeria strongly believes in South-South cooperation. We can, therefore, not be passive participants in global decision-making on financial restructuring, debt forgiveness, climate change, environmental issues, and healthcare.

Daily Trust reports that Nigeria has historically been a major beneficiary of AGOA, exporting $1.76 billion worth of goods to the United States in 2024, making it the second-largest AGOA exporter after South Africa.

A recent report by Strategy & the strategy consulting arm of PricewaterhouseCoopers (PwC) warned that Nigeria may face heightened trade barriers and increased tariffs on exports to the United States.

In its report, titled ‘Global Economic Policy Changes and Implications for Nigeria’, PwC highlighted looming economic challenges for the country as potential changes to President Donald Trump’s U.S. trade policies could disrupt access to crucial markets.

The report emphasised that Nigeria’s economic vulnerability is tied to the future of the African Growth and Opportunity Act (AGOA), a U.S. trade program that facilitates duty-free access to American markets for goods originating from eligible sub-Saharan African nations.

If AGOA benefits are not renewed, Nigeria may lose key trade privileges, severely impacting its exports of crude oil, agricultural products, and manufactured goods.

The removal of AGOA benefits could drastically reduce Nigeria’s competitiveness in the U.S. market, leading to a decline in export volumes and foreign exchange earnings.

 

 What experts are saying?

President of the Nigeria Economic Society (NES), Professor Adeola Adenikinju in a chat with our correspondent said Nigeria should not be worried about President Trump’s threat as Nigeria doesn’t have too many exports to America.

He expressed doubt that Donald Trump would impose tax on oil and gas exports which are presently tax-free.

He said, “Our non-oil export to the US is very small. In terms of the real impact to our economy, it may not be that significant. Nigeria would have to compare the costs and benefits, what are the benefits of aligning with BRICS. One, China is our largest importer, most of our goods are from China.

“Our exports go to Europe and India. China is a member of BRICS, India is a member of BRICS, South Africa is a member.

“While not antagonising America, we have a lot more to gain by associating with BRICS. Joining BRICS does not mean we are against America. Our interests are more aligned and Nigeria would benefit more by associating.”

Economist and Chief Executive Officer, Centre for the Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf in a chat with our correspondent advised Nigeria to handle the issue very carefully “to avoid direct confrontation with the US without undermining our sovereignty.”

He stated that imposing the 10% tariff on Nigeria could “affect our trade with the United States,” adding, “We do some exports of oil although US is also a major oil producer and it still exports some oil and gas products. Dangote Refinery has been exporting a few things like fertiliser and other petroleum products to the United State. We don’t want to jeopardise it.”

“Though oil and gas products are exempted from all these tariffs but if he decides to attack that, it would have some effect…So there could be impact at the corporate level and impact at the governmental level.”

According to him, given the unpredictability of Trump’s administration, it is important for Nigeria to be able to manage the situation.