Trump’s Tariffs And The Average Nigerian

Trump’s Tariffs and the average Nigerian

Global trade might seem like “big man” politics far away in Washington or Beijing, but it has a way of affecting the price of rice in Oshodi or the cost of spare parts in Alaba market.

What Are Tariffs, Legally Speaking?
Under international trade law, a tariff is a duty or tax imposed on imported (and occasionally exported) goods. Legally, countries are permitted to set tariffs as part of their sovereign right under the World Trade Organization (WTO) framework. However, these tariffs must comply with multilateral trade rules and bilateral agreements.

In Nigeria, the Customs and Excise Management Act (CEMA) empowers the federal government, through the Nigeria Customs Service, to impose and collect import duties. Tariff rates are guided by the ECOWAS Common External Tariff (CET), which harmonizes duties across West African states, except where Nigeria has special exemptions or waivers.

So, when the U.S. imposes a 14% tariff on Nigerian exports, it doesn’t just hit businesses—it also interacts with Nigeria’s obligations under trade treaties, including AGOA (African Growth and Opportunity Act), WTO rules, and any bilateral agreements in force.

Trade Wars: Legal and Diplomatic Implications
US President Donald Trump’s second term has reignited the global trade war, with aggressive new tariffs targeting countries with whom the U.S. has trade deficits. Legally, the U.S. relies on national security or unfair trade practice clauses under U.S. law (e.g., Section 301 of the Trade Act) to justify these tariffs.

In March 2025, after failed negotiations, the U.S. imposed a new round of tariffs on China and several other countries, including a 14% tariff on Nigerian goods. For Nigeria, this raises important questions of international trade law:

Violation of WTO Rules? Nigeria could argue that the U.S. tariffs are discriminatory and not justified under WTO rules. However, the dispute resolution process is slow and politically fraught.
Retaliation? Nigeria could lawfully impose countervailing duties under its local laws or invoke dispute resolution procedures. However, this may not be strategic given Nigeria’s economic position and reliance on U.S. markets for certain goods.

How It Hits the Nigerian Wallet
Tariffs may sound like technical trade talk, but they directly shape what you pay in the market. Here’s how:

1. Imported Goods Get Pricier: Nigeria imports a lot—electronics, cars, spare parts, even some types of food. When the countries we trade with start imposing or facing tariffs, those costs are passed on to importers and, eventually, to you. That second-hand Tokunbo car, the new phone from Alaba, or even that kitchen blender might cost more because the trade route just got more expensive.
2. Inflation Grows: If costs go up for importers and manufacturers, they’ll increase prices to stay afloat. That affects your everyday expenses—from bread and fuel to school bags and cement.
3. Uncertain Jobs and Salaries: If companies are paying more to bring in goods or can’t export their products abroad due to new tariffs, they might reduce their workforce or halt expansions. That affects job creation, wages, and stability.

So yes, a policy decision signed in Washington D.C. can determine whether the bread in your local shop costs ₦800 or ₦1,000.

AfCFTA to the Rescue?
>>>>>The African Continental Free Trade Area (AfCFTA) is a legally binding agreement under the African Union, aimed at creating a single market for goods and services across Africa. Nigeria ratified the agreement in 2019, incorporating it into domestic law through the AfCFTA (Ratification and Enforcement) Act.

Key legal features of AfCFTA:

1. Tariff Reductions: Member states commit to eliminating tariffs on 90% of goods over a period, under binding schedules submitted to the AfCFTA Secretariat.
2. Dispute Settlement Mechanism: AfCFTA has its own dispute resolution protocol, modeled after the WTO but with African ownership.
3. Rules of Origin: Only goods produced within member states that meet certain criteria qualify for tariff preferences—this ensures that AfCFTA isn’t misused by third countries transshipping goods through Africa.
4. Protocols on Services, Investment, and Competition: These create a legal ecosystem for seamless business activity across borders.

But what does that mean for you?

1. Cheaper African Goods: Goods from Ghana, Kenya, or Rwanda could come into Nigeria without heavy duties, making them cheaper for you as a consumer.
2. More Opportunities for Nigerian Products: Nigerian-made goods, from textiles in Aba to shea butter in Niger, can access new markets without trade barriers, creating more business opportunities and jobs.
3. Boost to Small Businesses: With less red tape, more Nigerian entrepreneurs—tailors, farmers, tech startups—can grow beyond the local market.

Conclusion
Trump’s tariff strategy has reignited old tensions in global trade law, while AfCFTA signals Africa’s determination to chart a new legal and economic path. For Nigerian businesses and families, this is both a challenge and an opportunity: global turbulence on one side, continental integration on the other.

Understanding the legal frameworks behind tariffs and trade agreements isn’t just for trade lawyers and policymakers—it’s for anyone who shops, trades, or dreams of doing business across borders. Because whether it’s the price of onions at Mile 12 or the cost of running a tech company in Yaba, the laws of global trade shape what’s possible.

So the next time a political leader in another country talks tariffs, just know—it might not be your country, but it could be your pocket they’re reaching into.