The African market, including Nigeria, is bracing itself for a new scramble as the tariff war between the US and its top trading partners, Canada, China, and Mexico, intensifies. This Nigeria trade war US-China Mexico Canada scenario means that Nigeria, which has a trade deficit with the US, may not be a passive observer in this crisis.
Implications of the Nigeria Trade War: US-China Mexico, and Canada
According to Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), “There is the trade dimension, investment dimension and currency implications dimension. There is also the dimension of imported inflation… For instance, for companies looking to export to the US, exporting from Nigeria will be better than exporting from China, Canada or Mexico.” This presents a unique advantage for Nigeria amidst the Nigeria trade war US China, Mexico, Canada.
The ongoing trade war has prompted retaliatory measures from the affected countries, with Canada announcing matching 25% tariffs on up to C$155 billion worth of US imports. China has also vowed to implement corresponding actions, potentially affecting electronics and apparel markets. These actions highlight the complexities of the Nigeria trade war US China, Mexico, Canada.
Nigeria’s Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, stated that Nigeria is not worried about the trade policies or tariff imposition, saying, “For us, it is Nigeria first, it is Africa first. We see this more in terms of opportunities. We’re not afraid; we’re not panicked.”
However, economist and business analyst Dr Vincent Nwani cautioned that Nigeria’s poor business environment, including inadequate infrastructure and logistics, would hinder the country’s ability to benefit from the trade war. He emphasized the need for Nigeria to focus on resolving its domestic economic challenges before seeking to capitalize on global trade opportunities.
