*ex-external affairs minister, Akinyemi cautions Tinubu
Trade relations between Nigeria and the United States may suffer a significant setback in the coming months should President Donald Trump make good his threat of 100 per cent tariff imposition on BRICS nations.
Trump in his immediate response to the BRICs nations over the bloc’s plan to reduce usage of dollar bills in global trade, vows to stiffen their economies with trade sanctions, as he said America as a big economy has a huge leverage over the BRICS.
BRICS (Brazil, Russia, India, China, and South Africa) nations had open discussions on plans to reduce their dependence on the U.S. dollar. The bloc’s membership comprises major emerging economies including Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
The bloc recently offered Nigeria a platform to expand trade, investment, and socio-economic cooperation with member countries as a partner nation, and the offer was accepted.
The federal government on Saturday, announced its acceptance to join BRICS as a partner country, marking a step towards full membership of the bloc. It is, however, unclear whether or not the 100 per cent tariff threat would be extended to partner nations.
Picture: Tinubu Vs. Trump
Nigeria’s inclusion as a partner country aligns with the country’s intention to join BRICS as a full member within the next two years, leveraging its large economy and population.
The immediate and future implications of Nigeria’s alignment with the BRICS is also not certain, but the situation may affect several trade agreements between Nigeria and the U.S.
Trump in an announcement just after he took oath as the 47th President of the United States on Monday, said there could be 100 per cent tariff BRICS nations. While signing executive orders at the Oval Office, Trump said, “As a BRICS nation…they’ll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they’ll give it up immediately.”
Trump who disagreed with his predecessor Joe Biden’s comments about the US being in a vulnerable position, said America holds leverage over the BRICS nations. He, thereby, noted that his statement should not be seen as a threat but as a clear stance on the matter.
“If the BRICS nations want to do that, that’s OK, but we’re going to put at least a 100 per cent tariff on the business they do with the United States. It’s not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, no, we have them over a barrel. And there’s no way they’re going to be able to do that,” Trump stated.
Should the BRICS nations not backtrack on its de-dollarization plan, the stiff resistance of the United States, which is a major destination for Nigeria’s crude oil may adversely affect the Nigerian economy. Nigerian exports to the United States include crude oil, cocoa, cashew nuts, and animal feed.
The U.S. goods and services trade with Nigeria totaled an estimated $10.6 billion in 2022. Exports were $5.2 billion; imports were $5.4 billion. The U.S. goods and services trade deficit with Nigeria was $177 million in 2022.
Meanwhile, Nigeria’s former minster of external affairs, Prof. Bolaji Akinyemi has cautioned President Bola Tinubu against having any confrontation with Trump. Akinyemi who spoke on Channels Television’s Politics Today program, urged Tinubu to avoid antagonising Trump as there is nothing a bully likes better than taking on people who are not strong enough to resist him.
According to him, an African proverb says if you are not strong enough to take on a bully and you take him on, you are just going to suffer more for it.
“That’s the advice I will give President Tinubu: try and avoid having a confrontation with him even if that means that he does things that annoy or does things that step on the interests of Nigeria. There are ways in which you could address his reaction without confrontation,” he said.
