A statement released on Sunday, Dr. Jumoke Oduwole, the minister of Industry, Trade and Investment,  warned that the move could significantly impact both oil and non-oil trade flows to one of Nigeria’s key markets.

An announcement by U.S. President Donald Trump introduced sweeping tariff measures that could see import duties rise as high as 50%.

The policy shift, unveiled during a “Make America Wealthy Again” event at the White House’s Rose Garden, marks a sharp departure from the long-standing global commitment to free trade.

While providing the Federal Government’s first official response to the development, which has drawn widespread criticism from the European Union and various exporting countries,

Oduwole emphasised that the newly introduced tariffs could undermine the competitiveness of Nigerian products in the U.S. market and disrupt business activities, particularly within the non-oil export sector.

“Nigeria’s exports to the United States over the past two years have consistently ranged between $5 billion and $6 billion annually,” she noted.

“Over 90% of these exports comprise crude petroleum, mineral fuels, oils, and gas-related products. Fertilisers and urea make up the second-largest export category, accounting for approximately 2–3%, while lead exports contribute around 1%—about $82 million in value.”

The minister added that smaller volumes of agricultural exports—including live plants, flour, and nuts—represent less than two percent of Nigeria’s total exports to the U.S.

She warned that non-oil products, many of which previously benefited from exemptions under the African Growth and Opportunity Act (AGOA), may now be adversely affected.

The new 10% tariff on certain product categories could diminish Nigeria’s price competitiveness and restrict access to the U.S. market, especially for value-added and emerging sectors critical to Nigeria’s economic diversification.

“Small and medium-sized enterprises that built their business models around AGOA exemptions will now face increased costs and unpredictable buyer demand,” Oduwole stated.

She stressed that this challenge reinforces Nigeria’s commitment to boosting non-oil exports by improving quality assurance, control mechanisms, and traceability systems to align with global standards—ultimately enhancing the global acceptance of Nigerian products.

“South Africa cannot afford to make adversaries of any global economic power. Our economy has stagnated over the past 10 years, with the government essentially having run out of money.

Over the last financial year, our debt-service costs amounted to R389 billion ($21.1 billion), with our debt-to-GDP projected to reach 76.2 per cent in this financial year,” says Stefan Kritzinger, head of Compliance and Support at Govchain.

“AGOA, our largest trade agreement with the US, remains at risk. Several US political leaders have already called for South Africa to be removed from the programme, which would result in devastating consequences for our economy,” continues Kritzinger.

Since AGOA’s enactment in 2000, South Africa’s exports to the US grew at an average annual rate of 12.98% between 2002-22, while 70% of South Africa’s agricultural products to the US have been possible through the programme.

South Africa is rich in natural resources and quality agricultural products. However, for businesses to enjoy the financial benefits of the imports and exports business, there are several regulatory boxes they must tick.

A business needs to be registered with the CIPC to legally trade. The basic requirements for registering include a company name, a business registration number, as well as tax number from SARS.

“This should be followed by applying for an import and export license, bearing in mind that the license is only officially required when the total imported or exported cargo is R150 000 or more within a year, that there are more than three imports and exports in one calendar year, and that the business is import for resale or business purposes and not for personal use,” explains Kritzinger.

Without this license, a business cannot clear goods at customs, legally cannot trade across borders, especially because SARS tracks imported and exported goods for tax and compliance.

To apply for a license, a business would need to complete a DA 185 application form and submit its CIPC company registration certificate, tax clearance certificate, bank confirmation letter, as well as a certified copy of the applicant’s ID or passport with the completed form to SARS.

Upon approval, SARS will provide the company with an import and export code that will be used every time a business moves goods across the border.

Kritzinger added that. “understanding import duties, VAT and customs fees is also equally important. While VAT is charged on all imports, customs duties vary depending on the type of product. On the other side, most exports are zero-rated for VAT, meaning there is no charge, but businesses are encouraged to keep clear records of exports to qualify for tax exemptions.”

Lastly, businesses must remain cognisant of any product restrictions and trade agreements. For example, alcohol and tobacco require additional import permits, while fresh food and agricultural products require health and safety certificates. Trade agreements may also qualify certain products for lower custom duties.

“Despite the current rocky diplomatic dispute with the US, South Africa still enjoys trade relations with the country, as well as many other lucrative markets around the world. It is important for businesses to get the compliance correct so they avoid missing out on the benefits,” Kritzinger concluded.