The digital currency, which started the year at $94,419.76, has now lost 18.28 percent of its value, wiping off about $291 billion in investors’ funds.

It is currently trading 6.65 percent below the $83,504.80 it closed at on Saturday, April 5, 2025.

Bitcoin had rallied in the weeks after the election victory of President Trump, who was pro-crypto and vowed to make the U.S. a Bitcoin superpower.

However, an escalation of trade tariffs and fears of slowing growth have weighed on the digital currency.

Bitcoin is posting its worst first-quarter performance since the first three months of 2018, according to Dow Jones Market Data.

Despite this, some analysts still see potential for a rebound, according to reports. “Despite near-term volatility, uncertainty is decreasing, and institutional buying pressure is returning. With key catalysts aligning, we expect Bitcoin to rebuild momentum and make another attempt at $90,000 in the near future,” said BRN analyst Valentin Fourner.

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.

Some global economy analysts believe that Nigeria and other developing economies may feel the full weight of the ‘new tariff regime’.

Dr. Muda Yusuf, the chief executive officer of Centre for the Promotion of Private Enterprises thinks otherwise.

In his analysis, Dr. Yusuf said:

“The vulnerability of the Nigerian economy to shocks of the current trade war unleashed by President Trump may be very limited.

Averagely, Nigeria’s external trade exposure to the United States is about 10%.”

Tariffs on just 10% of Nigeria’s total exports might not have a significant effect on Nigeria. Nigeria’s major export destinations are Spain, France, Netherlands, and Italy, with oil and gas exports accounting for about 90% of exports.

According to the CPPE’s CEO, “Nigeria’s total merchandise export was valued at 50.4 billion dollars in 2024, and Nigeria’s export to the U.S. was 5.7 billion dollars, representing 11.3% in the same year”.

However, Nigeria’s economy may be affected indirectly as Trump‘s administration has practically brought a close to the African Growth and Opportunity Act (AGOA) Trade window, which creates tariff-free access to the U.S. market. 

Also, the retaliatory tariff on the U.S. may result in increased costs of imports into Nigeria from the U.S.

Despite the negative impact of the tariff on Nigeria’s economy, it still has its positive contribution to Nigeria as a worsening inflation outlook for the U.S. may trigger monetary tightening by the U.S. federal reserve, which could benefit the naira in the foreign exchange window.

In addition, victims of the tariffs would seek new bilateral trade agreements, creating an opportunity for Nigeria to forge ties with new partners, consequently benefitting Nigeria’s trade relationship.

Trump said the U.S. will implement “reciprocal tariffs” on all countries of “approximately half” of what they charge us.

Among the countries slammed with reciprocal tariff is Nigeria. Under the tariff plan, Nigerian exports will be charged 14 per cent tariff as against the 27 per cent charged by the Federal Government.

Last year, Nigeria exported goods worth N931 billion to the United States, with crude oil forming the bulk of the goods. It, however, imported N1.05 trillion worth of goods from the U.S. in the same period.

Bringing out a chart to show the audience, he showed that China “charges” the U.S. a tariff of 67%, so the United States will charge China a 34% tariff.

The chart also showed that the United States will charge the European Union a 20% tariff, Vietnam a 46% tariff, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%, Cambodia 49% and more.

Trump concluded his “make America wealthy again” event in the White House Rose Garden by signing two executive orders. The first closes “the de minimus loophole” on China, which has allowed the country to export cheap goods to the United States without paying taxes and import duties.

The second implements the president’s “reciprocal tariffs”, which the president explained includes a 25% tariff on all imported cars and 10% to 49% tariffs on all goods imported from abroad.

Trump said the tariffs he announced would generate “$6 trillion in investments” but experts explain that tariffs are actually paid for by American businesses and consumers. That would make it the largest “tax hike” in U.S. history.

The European Union, which is facing 20% tariffs on all exports to the U.S., will not react until today when the European Commission president Ursula von der Leyen will make a statement.