Nigeria urged to look inward as global trade war escalates

We’re disappointed, UK tells U.S.

There has been a significant escalation in the trade war between the U.S. and Canada, as tariffs on Canadian steel and aluminum has been hiked from 25 to 50 per cent by President Donald Trump, in retaliation for Ontario’s 25 per cent surcharge on electricity exports to several U.S. states.

The war has sparked concerns about a looming recession in the U.S., with the stock market responding negatively. NASDAQ experienced its worst day since September 2022, dropping four per cent.

Despite tariffs on Canada, Mexico and China’s steel, aluminum, Trump has said it would extend to the rest of Europe, Brazil, South Korea and would also affect pharmaceutical drugs, copper, lumber and computer chips.

In retaliation, the European Union (EU) has announced its own retaliatory trade measures against the U.S. yesterday, imposing tariffs on a range of industrial and agricultural products in response to the latest round of U.S. duties on steel and aluminum imports.

The new EU tariffs, which will take effect from April 1, are aimed at counterbalancing the Trump administration’s 25 per cent levy on all steel and aluminum imports. The decision intensifies already tense transatlantic trade relations, with the EU rolling out countermeasures amounting to €26 billion ($28 billion).

REACTING to the development, the National President, Association of Small Business Owners in Nigeria (ASBON), Dr Femi Egbesola, has said the situation presents an opportunity for Nigeria to boost self-reliance and self-development as well as improving regional trade.

Pointing out that though import of steel and aluminum had reduced compared to a few years ago, he said it still made up over one per cent of Nigeria’s imports, amounting to almost a billion dollars.

“We have the natural resources, the manpower and technical know-how to develop our iron and steel industry, which we abandoned. However, recent events have shown that now more than ever, we must become self-reliant; if not, the cost of these materials would be unbearable. We should develop our weak infrastructure and focus on regional and continental trade,” he said.

MEANWHILE, the British government, yesterday, said it was disappointed with President Donald Trump’s imposition of tariffs on steel and aluminum imports. It, however, did not follow the European Union in retaliating.

Britain had hoped to avoid tariffs on its steel sector, which is small, but produces specialist products for defence and other industries.

A British official said on Tuesday the government would not impose retaliatory trade tariffs on the United States and focus instead on trying to secure an exemption.

The head of the British steel trade body, UK Steel, questioned whether Trump realised Britain was an ally, not a foe.

“Our steel sector is not a threat to the U.S., but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade,” Director General Gareth Stace said.