……….Says decision may pose a serious threat to global trade stability
Policy House, a leading economic research and analysis firm, has released a statement expressing deep concern over the recently imposed 14% tariffs on certain African nations by the United States. According to Policy House, five-year historical trade data reveal a consistent net positive trade balance for Nigeria with the U.S., largely driven by petroleum and associated products, which constitute 79% of the trade volume.
This tariff increase directly contradicts the spirit of the 1992 African Growth and Opportunities Act (AGOA), designed to foster trade between the U.S. and sub-Saharan African countries. While African nations have faced challenges in maximizing the benefits of AGOA due to existing economic constraints, these new tariffs will further impede their progress.
“Tariffs are ultimately borne by consumers,” stated the Executive Director of Policy House, Taiwo Akerle.” Given Nigeria’s favorable trade balance and the essential nature of our petroleum exports, the burden of these tariffs will likely fall on American consumers.”
The recent U.S. Senate vote of 52-48 against high tariffs on Canada underscores the unpopularity and potential unsustainability of this tariff regime. Policy House projects that the U.S. economy will suffer significant repercussions. Notably, Tesla’s declining sales in Europe, Canada, China, and the U.S. signal a broader trend that could affect other American-made goods, potentially triggering a severe economic recession.
“Reciprocal tariffs are inevitable,” Taiwo Akerele added. “Every tariff imposed will be met with a countermeasure, escalating into a damaging trade war.”
Policy House calls upon the World Trade Organization (WTO) to intervene and uphold its responsibilities during this critical period. The current situation poses a serious threat to global trade stability and could lead to a major international trade dispute.
