Trump Applies 15% Tariff on Nigeria and Multiple African Countries, Sparking Trade Alarm

 Trump Applies 15% Tariff on Nigeria and Multiple African Countries, Sparking Trade Alarm

Trump Applies 15% Tariff on Nigeria and Multiple African Countries, Sparking Trade Alarm

Washington, D.C. & Abuja – August 1–2, 2025
Under a new executive order titled “Further Modifying the Reciprocal Tariff Rates,” former U.S. President Donald Trump has imposed a 15% import tariff on Nigeria and many African nations, raising concerns over economic disruption and shifting global trade dynamics.

Tariff Coverage Across Africa

Affected African countries facing the 15% tariff include:

  • Nigeria, Ghana, Côte d’Ivoire, Cameroon, Uganda, Zambia, Zimbabwe, Malawi, Mozambique, Mauritius, Namibia, Madagascar, Botswana, Chad, Equatorial Guinea, and Lesotho (reduced from a proposed 50%)

  • South Africa and Libya face higher rates of 30%; Tunisia faces 25%

Economic Concerns & Domestic Impact

  • Citigroup's Head of Sub-Saharan Africa, Akin Dawodu, warns the policy may accelerate Africa’s pivot toward China, the EU, and the Middle East as preferred trade partners.

  • Nigeria’s currency, the naira, weakened slightly post-announcement, and firms—especially SMEs in textiles, agriculture, and light manufacturing—are expecting disruptions, canceled orders, and declining forex inflows.

Regional Fallout: Case Study of Lesotho

  • Though the proposed tariff rate for Lesotho was reduced to 15%, its textile industry remains in crisis. The sector, which employs tens of thousands, has seen major order cancellations and rising factory closures.

  • Lesotho trade officials claim the U.S. overstates their tariffs, and local firms are appealing for deeper reductions.

Policy Background & Global Reaction

  • These tariffs are part of Trump’s broader “reciprocal” trade framework targeting around 68 countries, with rates ranging from 10% to 50% depending on perceived trade imbalances. The order takes effect on August 7, 2025, though modifications for African countries began earlier.

  • The sweeping changes have rattled global markets: equities declined sharply as investors factored in trade uncertainty and rising inflation risks.

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