US President Donald Trump has slammed a 10 percent “minimum baseline tariff” on all imports into the united State with many nations, including Nigeria, facing even higher rates ever.Trump announced the long anticipated push of tariffs yesterday, a day he termed “Liberation Day”, stating that the policy will erase trade imbalances between the US and other nations.
The US President under the controversial policy introduced two types of tariff. The first tariff imposes a 10 per cent flat tax on every import entering the US.
The second set is the reciprocal tariffs, which specifically target imports from 60 nations.
Accordingly, many African countries are affected by the reciprocal tariff, with Nigeria facing a 14 percent import duty, the second highest among West African countries after Cote d’ Ivoire which was slammed with 24 per cent.
While Ghana and Ethiopia both to face a 10 per cent baseline tariff.
On the African continent, the most affected countries are Lesotho with 50 per cent, Madagascar with 47 percent and Botswana with 37 per cent.
According to experts, the new policy is threatening the trade between Nigerian and the US, particularly crude oil, which is Nigeria’s major export.
Nigeria is a major exporter of crude oil, petroleum gas, and nitrogen-based fertilizers to the US, while on the other side; the US predominantly ships cars, refined oil products, and wheat into Nigeria.
Recently, the US recently began importing jet fuel from the Dangote Refinery, with six vessels carrying 1.7 million set to be docked this month.
According to Trump, the reciprocal tariff was designed to guard the US economy from being “cheated” and equalize the trade balance.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said.
“Foreign leaders have stolen our jobs. Foreign cheaters have ransacked our factories. And foreign scavengers have torn apart our once-beautiful American dream.”
China with highest tariff
President Trump’s reciprocal tariff ends decades of US trade policy and has made it possible to unleash a global trade war especially with China and South Africa.
The US president, through his draconian policy has set a stage that will rattled global trade and could trigger a global recession.
Although, it is obvious that China, the top US economic rival is the major target of Mr Trump’s first-term trade war, is again in his crosshairs.
The country was initially charged a 34 per cent reciprocal tariff rate, stacked on top of 20 percent duties Mr Trump already imposed this year, tied to fentanyl trafficking.
That means many Chinese imports face tariffs well above 50 per cent.
President Trump also plans to end duty-free shipping of small parcels from China under the “so-called de minimis exemption.”
In reaction, China, being hit by the world’s biggest tariff rate, revealed that the US government’s move will undermines the balance of interests established through years of multilateral trade negotiations.
“China firmly opposes this and will take countermeasures to safeguard its rights and interests,” the ministry said.
The European Union, which has begun preparing emergency measures to shield its economy from Mr Trump’s tariffs, is subject to a 20 per cent levy.
However, the new tariff does not include Canada and Mexico yet.
