Tag: U.S. Tariff

  • 14% U.S. Tariff: Not Direct Telecom Blow, But the Fallout Could Be Worse

    14% U.S. Tariff: Not Direct Telecom Blow, But the Fallout Could Be Worse

    Telecom operators in Nigeria are seemingly unaffected by the 14% tariff imposed by U.S. President Donald Trump on non-oil exports, nonetheless, the ripples of this trade policy could still lead to challenges in the industry. 

    The core reason is that Nigeria’s telecom sector, while heavily reliant on imported infrastructure, is not an exporter of goods but rather, an importer of equipment from countries like China, the U.S., and parts of Europe.

    Tony Emoekpere, president of the Association of Telecommunication Companies of Nigeria (ATCON), said, “It won’t affect the industry much because the operators import everything they use directly. They don’t export.” 

    There is actually more at play than just the tariff’s direct impact. Emoekpere pointed out that the sector’s vulnerability lies in the national economic dynamics, specifically those affecting foreign exchange and inflation.

    The recent 50% increase in telecom service tariffs, a decision made to counteract the high costs of operations, directly connects to the overall economic climate. 

    Inflation, alongside a weakened naira, has placed huge pressure on telecom operators, pushing them to make difficult pricing adjustments. 

    This price hike aims to stabilise operations while promoting investments in infrastructure—something that could be compromised if the U.S. tariff negatively impacts the country’s larger economic space. 

    Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), stresses a particular issue: “There is no hardware that we export, but there might be issues with charging international calls by local operators. If the VAT on calls in the US increases, local operators will need to adjust to the rates.”

    Even with the tariff not directly targeting the telecom sector, Nigeria’s non-oil exports, which include agricultural products and industrial raw materials, are now facing a more challenging global market. 

    This, in turn, could shrink foreign exchange earnings, further depreciating the naira and fuelling inflation. The result could be a tougher environment for telecom operators who depend on the importation of equipment priced in foreign currencies.

    The U.S. tariff’s impact on Nigeria’s exports could cost the country as much as $814.8 million annually, according to estimates. While Nigeria’s foreign exchange reserves have recently climbed to $23.11 billion, the highest in three years, these reserves remain vulnerable to external shocks. 

    With telecom operators fighting with rising import costs, this buffer might not be enough to shield them from the compounded effects of inflation, energy costs, and currency depreciation.

    Adding to the issue, many Nigerians are venting discontent over the 50% tariff hike. Labour unions, including the Nigeria Labour Congress (NLC), have threatened industrial action, accusing telecom operators of taking advantage of the economic crisis. 

    The public’s annoyance comes not just from the high costs but also from ongoing issues with poor network quality despite operators’ claims of improved service.

    The government’s response to these external pressures is important. Though the U.S. tariff appears to have little direct impact on the telecom sector, the cascading effects on foreign exchange and inflation may present a different story. 

    There’s a sense of cautious positiveness within the industry, with some hoping the government will negotiate with the U.S. to ease the stress on Nigerian exporters and, by extension, telecom operators. This could involve forging new trade agreements or diversifying markets for Nigerian goods.

    However, even as the industry walks through these external trade dynamics, the challenges within Nigeria’s telecom sector are a lot. Poor service delivery, limited infrastructure development, and an increasingly price-sensitive market all contribute to the difficulties operators face in balancing profitability with customer satisfaction. 

    Gbenga Adebayo says, “If the VAT on calls in the US increases, local operators will need to adjust to the rates”—reiterating the challenges in global trade dynamics that could ultimately affect Nigerians on the ground.

    In this environment, telecom operators will need to tread carefully, managing their costs while striving to meet customer expectations. With consumers already on edge due to the tariff hike, any further economic turbulence could push the sector closer to a tipping point.

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  • Trump Slaps 104% Tariff on Chinese Goods, China Hits Back with 84% on U.S. Imports

    Trump Slaps 104% Tariff on Chinese Goods, China Hits Back with 84% on U.S. Imports

    Hours after President Donald Trump’s sweeping 104% tariff on Chinese imports took effect, Beijing fired back with an 84% levy of its own on American goods—more than doubling its previous rate.

    Markets didn’t wait to digest it. Wall Street futures plunged overnight. The Dow dropped nearly 2%. S&P 500 and Nasdaq futures weren’t spared either, falling 1.72% and 1.45% respectively. 

    Europe and Asia took hits too, with London’s FTSE and Japan’s Nikkei both seeing steep losses. Safe havens? Not anymore. Even U.S. government bonds faced a sell-off.

    The Chinese Finance Ministry confirmed the tariff hike late Wednesday, saying it would take effect at 12:01 p.m. Thursday. From that point on, American imports into China would face an 84% tariff—up from 34%.

    The tariff escalation against China by the United States simply piles mistakes on top of mistakes,” Beijing said. “It severely infringes on China’s legitimate rights and interests.”

    This all began with a deadline. Trump demanded China reverse its own tariff by Tuesday. When that didn’t happen, the White House moved quickly. Press Secretary Karoline Leavitt spelt it out: “The president, when America is punched, he punches back harder, that’s why there will be 104% tariffs going into effect on China tonight at midnight.”

    She also dangled a small olive branch. “The president would be gracious if President Xi wants to make a deal,” she added. But if there’s an opening for diplomacy, it’s getting harder to find.

    For now, both Trump and China are digging in regarding the tariff changes. China’s Commerce Ministry blasted Washington’s move as “unilateral bullying” and “blackmail,” while warning of further countermeasures. 

    The Ministry said the 104% tariff was groundless and a violation of international norms. Its response, it said, was to protect China’s sovereignty and development.

    China’s retaliation didn’t stop at tariffs. Six U.S. tech firms—including Shield AI and Sierra Nevada Corp—have now been sanctioned. Beijing accused them of selling weapons to Taiwan and collaborating on military projects with the island. That’s a sharp escalation, and not just economic.

    Trump, for his part, seems unfazed. At a press event with Israeli Prime Minister Netanyahu, he was asked whether the U.S. might ease off on its global tariff stance. His answer: “We’re not looking at that.”

    In the background, over $5 trillion in U.S. market value has been wiped out since Trump’s new tariff policy was revealed. The S&P 500 is down nearly 20% from its peak, technically placing it in bear territory. Oil prices have also crashed, reaching lows not seen since 2021.

    The economic pressure is real. But politically, Trump appears to be leaning into the chaos. He posted on social media urging American companies to bring their manufacturing home: “Don’t wait, do it now!”

    China, however, has drawn a line. “We will fight to the end,” a statement from state-run Xinhua declared earlier this week. And now, it’s walking that talk.

    What’s next? Neither side is backing down. Both have shown they’re willing to take the pain. But then, businesses and consumers are caught in the middle.

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  • Elon Musk Loses $134.7 Billion in 2025 Alone as Tesla Stock Crashes, Tariff Issues Escalate

    Elon Musk Loses $134.7 Billion in 2025 Alone as Tesla Stock Crashes, Tariff Issues Escalate

    Elon Musk, Tesla and SpaceX CEO’s wealth has taken a fresh beating. And this time, the hit runs deeper than just a dip in stock prices—it’s about politics, perception, and power. 

    The Tesla CEO is no stranger to rockiness, but dropping below $300 billion in net worth for the first time in months is a turning point, especially as global markets continue to shudder under the weight of President Trump’s latest trade war.

    On Monday alone, Elon Musk saw $4.4 billion wiped from his fortune as Tesla shares slid further. That’s not even the worst of it—he’s lost $134.7 billion since the start of the year. The Bloomberg Billionaires Index now places him at $297.8 billion.

    This sudden fall is beyond market jitters. It’s political. Musk’s growing presence inside the Trump administration, especially in his role as a senior adviser and head of the Department of Government Efficiency (DOGE), has dragged him into a storm. On paper, his closeness to Trump should have insulated him. Instead, it’s made him a lightning rod.

    Tesla, once the darling of Wall Street and a badge of clean energy progress, is increasingly caught in the crossfire. The company’s stock has nosedived over 50% from its December peak. 

    Many investors aren’t shy about what’s pushing them away—Musk’s polarising behaviour and outspoken political views. One Bloomberg report didn’t mince words: “The billionaire CEO’s polarizing behaviour and social media activity are alienating would-be buyers and leading owners of Tesla cars to distance themselves from his politics and the company’s damaged brand.”

    That damage isn’t theoretical. It’s showing up on balance sheets and in public sentiment. Protesters have begun targeting Tesla showrooms. Vandalism incidents have picked up. And all this comes as Musk juggles multiple roles, leaving even supporters wondering where his priorities lie.

    When asked by Fox Business how he manages his various hats, including advising Trump while running Tesla, SpaceX, and more, Musk didn’t sugar-coat it: “With great difficulty.”

    The tariffs, however, have added a sharper edge. Trump’s latest wave of protectionist policies—especially the proposed 50% tariff on Chinese imports—have rattled markets and angered many in the tech and auto sectors. 

    Elon Musk, despite backing Trump publicly on some fronts, has made it clear he’s not on board with the trade agenda. Over the weekend, he shared his ideal scenario: “Zero tariffs and a free trade zone between the US and Europe.”

    His brother, Kimbal Musk, didn’t hold back either. On X (formerly Twitter), he posted: “Even if tariffs bring jobs back, prices will stay high. It’s a structural, permanent tax on the American consumer.”

    The ripple effect has been harsh. Global stock markets went into a tailspin. The Bloomberg index tracking the world’s richest individuals dropped by $271 billion in one day—its third-worst performance in history. Musk ranked sixth in terms of losses on Monday alone. 

    Tesla wasn’t the only company bleeding, but its connection to a political firestorm made the damage more public and symbolic.

    Meanwhile, the European Union is already placing itself to de-escalate. EU Commission President Ursula von der Leyen showed openness to a mutual tariff freeze on industrial goods to avoid further escalation.

    But that may come too late for Musk. The political gamble of standing close to power is looking more costly by the day. Despite holding on to his title as the world’s richest man—for now—his cushion is thinning. 

    Jeff Bezos, second on the list, still trails by over $100 billion, but the gap is closing faster than expected.

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  • Muda Yusuf on Why 14% ‘Trump Tariff’ May Not Affect Nigeria’s Economy Harshly  

    Muda Yusuf on Why 14% ‘Trump Tariff’ May Not Affect Nigeria’s Economy Harshly  

    The United States (U.S) slammed a 14% tariff on Nigerian exports on Wednesday in what Donald Trump’s administration termed ‘reciprocal tariffs’  ‘to balance trade with the rest of the world’. 

    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.

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