In a move that could escalate global trade tensions, former U.S. President Donald Trump announced the implementation of new tariffs on Wednesday, referring to the decision as a “liberation day.”
Trump’s tariff policy aims to introduce “reciprocal tariffs”, meaning that the U.S. will impose duties on imported goods equivalent to roughly half of what those countries charge American exports.
Among the nations affected by this policy is Nigeria. Under the newly introduced tariff structure, Nigerian exports to the United States will now be subject to a 14% tariff, in contrast to the 27% tariff imposed by the Nigerian government on U.S. exports.
Last year, Nigeria exported goods worth N931 billion to the United States, with crude oil forming the bulk of the goods. It, however, imported N1.05 trillion worth of goods from the U.S. in the same period.
Bringing out a chart to show the audience, he showed that China “charges” the U.S. a tariff of 67%, so the United States will charge China a 34% tariff.
The chart also showed that the United States will charge the European Union a 20% tariff, Vietnam a 46% tariff, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%, Cambodia 49% and more.
Trump concluded his “make America wealthy again” event in the White House Rose Garden by signing two executive orders.
The first closes “the de minimus loophole” on China, which has allowed the country to export cheap goods to the United States without paying taxes and import duties.
The second implements the president’s “reciprocal tariffs”, which the president explained includes a 25% tariff on all imported cars and 10% to 49% tariffs on all goods imported from abroad.
Trump said the tariffs he announced would generate “$6 trillion in investments” but experts explain that tariffs are actually paid for by American businesses and consumers. That would make it the largest “tax hike” in U.S. history.
The European Union, which is facing 20% tariffs on all exports to the U.S., will not react until today when the European Commission president Ursula von der Leyen will make a statement