In a renewed push for economic protectionism, Donald Trump, during his second term as U.S. President, has intensified his tariff policies—sending shockwaves through the global economy. The latest move includes imposing 25% tariffs on all steel and aluminum imports into the United States, triggering swift retaliation from major trading partners.
Global Backlash: Trade War Intensifies
Canada, the largest steel and aluminum supplier to the U.S., responded promptly by enforcing 25% reciprocal tariffs on U.S. steel and raising taxes on a range of goods including tools, computers, sports equipment, and cast-iron products.
The European Union followed suit, announcing plans to increase tariffs on American beef, poultry, bourbon, and motorcycles. Meanwhile, China—already embroiled in trade disputes with the U.S.—imposed counter-tariffs and vowed to fight to the end in the escalating trade war.
European Commission President Ursula von der Leyen criticized the move, warning of its negative economic impact.
“Prices will go up, in Europe and the United States, and jobs are at stake. Tariffs are taxes—bad for business and even worse for consumers,” she said.
Trump’s Justification: “Making America Rich Again”
President Trump defends his aggressive tariff policy as a means to revive U.S. manufacturing and discourage outsourcing. Speaking to American manufacturers, he emphasized the administration’s stance:
“If you don’t make your product in America, you will pay a tariff—and in some cases, a rather large one. Tariffs are about making America rich again and great again.”
Economic Fallout: Global Markets and Growth at Risk
Economists warn that retaliatory tariffs could backfire, causing higher costs for American consumers and disrupting global trade flows. Financial markets have already reacted—U.S. stocks and global indices have slumped amid concerns about prolonged trade disputes.
With a GDP of $27.97 trillion, the United States leads the global economy, followed by China ($18.56 trillion) and Germany ($4.7 trillion). Analysts worry that a prolonged trade war among these economic powerhouses could slow down the world economy and intensify global inflationary pressures.
Nigeria’s Vulnerability: Oil Revenue at Risk
For resource-dependent economies like Nigeria, Trump’s trade policies pose additional challenges. A global economic slowdown could lead to a decline in crude oil prices, threatening Nigeria’s primary revenue source.
While there is momentum in domestic refining, Nigeria’s industrial sector remains underdeveloped. The Ajaokuta Steel Complex, which could have boosted Nigeria’s industrialization, has remained non-operational since 1979, leaving the country reliant on imports for essential steel products.
The textile industry, once a major employer, has also collapsed, with Nigeria spending between $4 billion and $6 billion annually on textile imports, mainly from Asia.
Call to Action: Nigeria Must Shift from Consumption to Production
Economic experts urge Nigeria’s government to prioritize local production and create an enabling environment for manufacturing. They highlight the urgent need to address high energy costs—which contribute up to 40% of production expenses—and reduce bureaucratic barriers for businesses.
Without reliable infrastructure, particularly electricity, Nigeria risks falling further behind. Policymakers emphasize that sustainable economic growth depends on the country’s ability to produce and export rather than rely solely on imports.
As the world’s largest economies battle through a trade war, nations with self-sufficient industrial bases—such as China, Canada, and the EU—are better positioned to weather the storm. For Nigeria, this ongoing conflict is a stark reminder of the urgent need to diversify its economy and reduce dependence on foreign goods.
