Muda Yusuf Speaks on What Nigeria Should Do About Trump's Tariff Imposition
- Nigeria has little cause to worry over the decision of President Donald Trump to impose tariffs and taxes on goods
- CEO of CPPE, Dr Muda Yusuf, said Nigeria's trade volume with the US was too insignificant to cause any real impact
- Yusuf observed that the aftermath of the policy could present opportunities for Nigerian Manufacturers
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Nigeria has no cause to worry about President Donald Trump’s decision to impose higher tariffs on goods from other countries.
This assurance is from Dr Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE).
Source: Getty Images
Yusuf noted that Nigeria and many other African countries mostly export into Asia and Europe and so would hardly be affected by the latest decision from the US President.
President Donald Trump announced on Monday, after his swearing-in, new plans to set up an External Revenue Service to improve tariffs and taxes on goods from other countries.
This sparked reactions and concerns about the negative impacts the move could have on international trade.
But Dr Muda Yusuf insists that Nigeria would barely feel any impact from this policy change.
He observed that Nigeria’s trade with the US mostly consisted of oil exports into US and that volume has dropped over time.
He said;
“I don’t think we should be overly worried. Trump’s target I believe is mostly China, Europe, Canada and so on. I doubt Africa and Nigeria will be greatly affected. Non-oil export numbers from Nigeria to the U.S. are very low and I doubt it will be affected. He is targeting countries that are exporting into the U.S. and looking for more opportunities to export American goods to other countries. His intention is clearly to protect American industries and since our export to them is not high, we don’t have much to lose”
Yusuf argued that since Trump intends to generate revenue by imposing these tariffs, the most affected would be countries and regions with huge trading volumes with the US, insisting that the impact on Nigeria and other African countries would be minimal.
Effects of the tariff Imposition
Dr Muda Yusuf pointed out that the decision to impose tariffs on goods would also trigger reciprocal policies from other countries to which the US exports, which could affect global trade.
He noted, too, that the affected businesses and countries would explore alternatives in their trading relationships and move their businesses to locations where they would attract fewer tariffs.
Yusuf also observed that US citizens would feel the heat the most in the aftermath, as increased tariffs and other retaliatory policies would inflate the prices of goods within the country.
He called on Nigerian manufacturers to look out for the opportunities that would arise from these policies and be poised to increase their production since goods coming from the affected countries may become too expensive for Nigerians or even scarce altogether.
Nigeria eager to collaborate with Trump
In a related development, President Bola Tinubu has sent a message to the newly sworn-in President, Donald Trump, indicating interests to continue collaborations.
Nigerian government congratulated Trump on his successful inauguration as the 47th President of the United States and reaffirmed its commitment to a strong U.S.-Nigeria partnership.
The government also highlighted the ongoing collaboration between the two nations in areas such as good governance, sustainable development, and the fight against terrorism, noting that Nigeria looks forward to strengthening the existing diplomatic and economic ties.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
