Nigeria Might Be Affected as BRICS Countries Face New US Tariffs

Nigeria is expected to be affected by new reciprocal tariffs announced by the United States President, Donald Trump on Monday.

This is coming barely 24 hours after President Trump had threatened to impose additional 10% tariffs on countries subscribing to what he described as BRICS’ “Anti-American Policies.”

BRICS is an acronym for Brazil, Russia, India, China, and South Africa, a bloc of countries that formed a partnership following the creation of the term in 2001 by Goldman Sachs economist Jim O’Neill (but it didn’t include South Africa at the time).

The bloc is aiming to decentralised world economy by providing a political and diplomatic coordination for countries from the Global South and for coordination in the most diverse areas.

Nigeria becomes the ninth partner country of BRICS in January, 2025, making it right on the helm of being affected by the additional Trump’s Tariffs.

While the BRICS Summit is ongoing in Brazil, on Monday, at least seven countries of the bloc have been placed on significant blanket tariffs on their exports to the United States beginning 1 August.

Trump shared a series of posts on his social media platform, Truth Social, revealing screenshots of signed letters addressed to the leaders of the aforementioned countries. The letters detailed newly imposed tariff rates.

Imports from Japan, South Korea, Malaysia, and Kazakhstan will be subjected to a 25% tariff. South African goods will face a 30% tariff, while goods from Laos and Myanmar will be taxed at a rate of 40%, according to the documents shared online.

These letters precede the reinstatement of the reciprocal tariffs originally scheduled to take effect on Wednesday, following Trump’s April announcement. Press Secretary Karoline Leavitt indicated that 14 such letters would be sent out on Monday, with more expected in the days to come. She also confirmed that President Trump will issue an executive order to postpone the tariff hike deadline until 1 August.

Financial markets reacted negatively, hitting fresh session lows as news of the extended tariffs emerged.

Trump’s letters mark a return to the steeper tariffs introduced on 2 April during what he dubbed “Liberation Day.” Initially, tariffs were set at 24% for Japan and 25% for South Korea. However, following global market volatility, Trump introduced a 90-day pause on 9 April, reducing all tariffs to 10% across the board.

The new letters clarify that the 25% tariffs are distinct from additional sector-specific levies and warn against transshipment — the act of routing goods through a third country to avoid higher tariffs. The documents state:

“Goods transshipped to evade a higher Tariff will be subject to that higher Tariff.”

Trump’s justification for the new measures centres on addressing longstanding trade imbalances. In 2024, the U.S. recorded a goods trade deficit of $68.5 billion with Japan and $66 billion with South Korea, according to the Office of the United States Trade Representative.

The letters warn Japan and South Korea against retaliating with tariffs on American goods.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” the letters read.

Trump further stated that if these countries eliminate their “Tariff and Non-Tariff Policies and Trade Barriers,” the U.S. “will, perhaps, consider an adjustment to this letter.”

He concluded:

“These tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America.”

Since the reciprocal tariffs were temporarily suspended in April, the Trump administration claimed it aimed to finalise 90 trade deals within 90 days. However, only three significant announcements have been made — frameworks with the United Kingdom and Vietnam, and a preliminary deal with China.

Under the Vietnam agreement, the U.S. will impose a 20% tariff on imports and a 40% duty for transshipped goods. In exchange, American exports to Vietnam would enter tariff-free.

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