In a renewed escalation of trade tensions, United States President Donald Trump has signed a new executive order that hikes tariffs on Nigerian exports to the U.S. up to 15 percent. This directive, enacted on July 31, modifies America’s existing reciprocal trade system and formally categorizes Nigeria among over 40 countries penalized for trade imbalances with the U.S. The updated tariff policy is scheduled to take effect from August 7.
New Structure Targets Trade Deficit Nations
Under the revised trade structure, any country running a trade deficit with the United States will now face a default 15 percent tariff on all goods shipped to American borders. In contrast, countries with a trade surplus in favor of the U.S. will pay a reduced 10 percent duty. This change reflects a sharp policy shift prioritizing reciprocity in international trade deals.
President Trump emphasized that the new measures were essential to restore equitable trade and eliminate what he termed “systemic trade abuse.” The executive order affirms that these tariffs are not just punitive but also protective of American industries and jobs.
Crackdown on Transshipment
An added component of the executive order includes a hefty 40 percent penalty on transshipments — goods routed through a low-tariff country from a high-tariff country before arriving in the U.S. While transshipment is sometimes used to manage shipping efficiency or cost, American trade officials have flagged it as a tactic often used to circumvent U.S. tariffs.
To prevent such practices, the directive grants expanded powers to the U.S. Customs and Border Protection (CBP), enabling more aggressive investigations and enforcement of trade rule violations.
Nigeria’s Position Under Threat from BRICS Association
Trade tensions with Nigeria may not end with the 15 percent tariff. In early July, President Trump signaled intentions to impose an additional 10 percent tariff on any nation that aligns itself with the anti-American policy direction of BRICS — the bloc consisting of Brazil, Russia, India, China, and South Africa.
Nigeria formally became the ninth partner of BRICS in January 2025, after Brazil announced the country’s acceptance. Trump was quoted as saying, “There will be no exceptions to this policy.” If the warning is acted upon, Nigerian tariffs could surge from 15 percent to 25 percent, further complicating trade for Nigerian exporters.
Impact on Nigeria’s Key Export Sectors
Nigeria’s largest export commodity to the U.S. remains crude oil and related petroleum products, which generate 90 percent of the nation’s foreign exchange. However, recent years have seen strategic moves by the government to diversify its export portfolio by promoting non-oil sectors such as cocoa, fertilizers, and other value-added goods.
These goods may now encounter higher entry costs into the U.S. market under the new tariff rules. It remains unclear whether oil exports are exempt, as they were in the April tariff round, labeled “Liberation Day.”
Written by LMSINT MEDIA, a seasoned journalist with professional reporting experience in trade, maritime, labor, migration, and tech sectors. A graduate of Mass Communication from the University of Jos, and a certified contributor with training from Financial Times, Reuters, and Google, LMSINT MEDIA provides a clear-eyed and informed analysis on intricate trade policies and their implications for Nigeria. He is currently based in Lagos, Nigeria, with regular travel to Abuja for field reporting.
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