US trade tariffs: High time FG diversified exports — Adeseyoju

By Tunde Oso

DataPro Limited, a starring Nigeria standing agency, has said the U.S. President Donald Trump’s ‘reciprocal tariffs’ connected Nigeria  makes it imperative for  the Federal Government  to  diversify exports, broaden financing sources, and hole for an epoch wherever planetary authorities measurement arsenic heavy connected recognition conditions arsenic section fundamentals.

Vanguard recalls that President Trump, aboriginal past period slammed a 15 per cent import tariff connected Nigeria, on with immoderate different African countries arsenic portion of a modified reciprocal tariff rates argumentation disclosed by the White House

In its Monthly Rating Brief for September sent to Vanguard, signed by its Managing Director, Abimbola Adeseyoju, DataPro said portion Trump’s volition was to shield American industries, the ripple effects widen good beyond U.S. borders,  unsettling planetary commercialized flows, concern decisions, and the recognition environment.

“For planetary markets and peculiarly for emerging economies similar Nigeria and Africa astatine large, the consequences are some contiguous and long-term.

“Trade tensions dampen export prospects. Global request weakens erstwhile protectionism rises, and that straight affects commodity-driven economies.

“Nigeria, inactive heavy babelike connected crude lipid (over 80% of export revenues), is susceptible to immoderate diminution successful lipid request oregon pricing volatility. Likewise, African cultivation exporters seeking to grow into U.S. oregon European markets hazard losing competitiveness successful an situation of rising commercialized barriers and cautious user spending,” helium stated.

Speaking connected the planetary commercialized shocks and African realities, Adeseyoju said: “Tariffs connected steel, aluminum, and a wide scope of Chinese goods sparked retaliatory measures worldwide. This escalation disrupted proviso chains, lifted import costs, and heightened inflationary pressures.

“While planetary corporates grapple with rising costs, African businesses look an added challenge: overseas speech volatility and import dependency. In Nigeria, for instance, manufacturers reliant connected imported machinery and inputs are squeezed by some higher dollar costs and weaker naira liquidity.

“Beyond trade, recognition markets are feeling the tremors. Analysts enactment that tighter recognition spreads, inflation, and slower planetary maturation are leaving small country for error. While U.S. firm defaults whitethorn stay stable, emerging markets look a riskier road.

“For Nigeria and different African sovereigns, this translates into higher borrowing costs successful the Eurobond marketplace and person scrutiny from recognition standing agencies. With indebtedness sustainability already a apical interest crossed the continent, trade-related shocks could tilt the equilibrium for susceptible economies.”

The station US commercialized tariffs: High clip FG diversified exports — Adeseyoju appeared archetypal connected Vanguard News.