Nigeria’s ailing economy could suffer another severe setback as a result of US President Donald Trump’s announcement of a new 10% tax on BRICS members.
Trump, who is notorious for his hardline trade policies, made the statement on his Truth Social platform on Sunday. He stated that any country that supports BRICS or aligns with what he dubbed “Anti-American policies” would face extra import duties, with no exceptions.
Brazil, Russia, India, China, and South Africa formed the BRICS alliance upon its inception. However, in 2024, six more countries; Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia, joined the coalition, increasing the group’s global reach. Nigeria became a BRICS associate country in January 2025.
President Bola Tinubu is now attending the 17th BRICS Summit in Brazil, at the invitation of Brazilian President Luiz Inacio Lula da Silva. Nigeria’s new status as a ‘partner country’ enables it to contribute to BRICS debates and engage in their economic and policy efforts, while it still falls short of full membership.
This promotion from guest status represents Nigeria’s increased commitment in the organization’s global mission. However, Trump’s ultimatum comes as BRICS officials have publicly slammed the US for “indiscriminate tariffs” and military actions in the Middle East.
Trump promptly replied to the criticism by restating his stated stance on trade tariffs. In previous months, he had warned both allies and adversaries of similar taxes unless trade agreements were reached by August 1.
Nigeria’s economy has deteriorated drastically since 2023. The country’s inflation rate increased from 18.85% in 2022 to 28.92% at the end of 2023. It peaked at 34.2% in June 2024 before falling to 27.5%, according to the Central Bank of Nigeria (CBN).
To stabilize the economy, the CBN implemented policies such as eliminating gasoline subsidies and floating the naira currency rate. However, Nigeria continues to experience high inflation, volatility in the oil market, and an urgent need for economic diversification.
Trump’s planned 10% tariff could have a significant impact on Nigeria’s export revenue, particularly from crude oil, which accounts for more than 90% of its shipments to the United States. Non-oil exports including fertilizers, agricultural products, and manufactured goods may also suffer.
While Nigeria is a key economy in Africa, its trade volume with the U.S. is relatively modest. However, additional tariffs could undermine the country’s efforts to broaden its export portfolio beyond oil.
With global markets already under stress, Nigeria’s growing ties with BRICS could come at a cost if the U.S. implements this tariff. As global power blocs reposition, Nigeria finds itself at a crossroads between economic opportunity and geopolitical tension.
