In a world that’s more connected than ever, a policy decision made in Washington can ripple across oceans and affect how much you pay for bread in Lagos or what your savings earn in Abuja. That’s exactly what’s happening now as U.S. President Donald Trump doubles down on tariffs, setting off a chain reaction that’s sending shockwaves through the global economy, Nigeria included.
While his move is meant to protect American interests, the fallout reaches far beyond the U.S. And for Nigerians already battling inflation, a weakening naira, and soaring food prices, understanding what’s happening, and where to put your money, has never been more urgent.
What Are Tariffs, and Why Is Trump Using Them?
At its core, a tariff is a tax. The word comes from Latin and refers to the duties placed on goods brought into a country. If you import a $10 product into the U.S. and there’s a 125% tariff, the product ends up costing $22.50. That extra $12.50? It’s either paid by the company or passed on to the consumer — neither of which is great for the economy.
So why is Trump playing this high-stakes game?
For decades, he’s argued that America’s trade imbalance is the result of being taken advantage of by foreign nations. His solution? Hit them where it hurts, which is at the ports. On April 9, his administration rolled out aggressive tariff hikes on imports from over 60 countries. China took the hardest hit, with tariffs recently raised to a whopping 125%. Others — like the UK, Brazil, Argentina, and even Nigeria — faced a “blanket” 10% baseline tariff.
The goal? Push Americans to buy American-made goods, raise tax revenue, and pressure trade partners into renegotiating deals. But not everyone’s buying into that plan. Singapore’s Prime Minister Lawrence Wong called the measures dangerously destabilizing. U.S. stock markets panicked — wiping out over $6 trillion in value in two days. The S&P 500 tumbled until Trump announced a 90-day pause on most of the tariff hikes (excluding China), calming nerves and triggering a brief rebound.
Still, the damage is done. China retaliated with an 84% tariff on American goods. The U.S. doubled down. Global markets teetered, and now, emerging economies like Nigeria are left holding the bag.
How Do These Tariffs Affect Nigeria?
Though Nigeria isn’t one of the U.S.’s top trade partners, we’re far from immune. Each year, Nigeria exports about $10 billion worth of goods to the U.S., and80% of that is crude oil. Trump’s new tariffs mean American buyers now have to pay more for Nigerian oil — up to 14% more. And in a competitive market, that’s a big deal.
A potential loss of $1.12 billion annually, about 10% of Nigeria’s entire health budget could be on the horizon if buyers pivot to cheaper oil from the Middle East or Latin America. That’s money that won’t fund schools, roads, or public healthcare.
Imports are another concern. Nigeria buys about$5 billion worth of goods from the U.S., everything from wheat to iPhones. Though the tariffs technically target exports to America, history shows these things rarely stay one-sided. If Nigeria retaliates with tariffs of its own, bread prices for example could rise by 15% (your N500 bread loaf could become at least N600). That’s on top of an already crushing 34% inflation rate. And in a country where over 60% of people struggle to afford three square meals, even a small increase is devastating.
Other imported goods like electronics, cars, and industrial equipment could also see price hikes of 20–30%, squeezing both businesses and families. All the while, the naira continues to slide, now hovering around ₦1,545 to the dollar. If oil revenues dip further, analysts warn it could sink to ₦2,000. That would make almost everything more expensive; fuel, medicine, school fees, and beyond.
How does this affect your savings?
Like we already said, Nigeria imports billions worth of goods from both the U.S. and China, including essentials like phones, electronics, industrial machinery, food, and medicine.
Now, with the U.S. placing massive tariffs on Chinese goods, Chinese manufacturers will need new markets to sell to — and fast. But because their profit margins are now tighter, and global demand is uncertain, they’re likely to increase prices to compensate for lost sales to America. That means you could soon be paying more for everything from your smartphone to your generator to your baby’s formula — even if you’re not buying anything American.
In a nutshell:
- U.S. goods become more expensive due to global uncertainties (and possible retaliatory tariffs by Nigeria). Think: phones, laptops, wheat, and second-hand cars.
- Chinese goods become more expensive globally because they’ve lost a major market and will raise prices to stay profitable.
- Your cost of living increases, your monthly budget stretches thinner, and that money you were setting aside to save? It starts disappearing into food, transport, and utility bills.
A 10–20% price increase on imported goods may not sound like much, but in a country with 34% inflation, it’s enough to destroy any progress you’ve made with saving. The cost of bread, petrol, medicine, and even children’s toys could shoot up — and that means your naira doesn’t go as far. And when things get more expensive? Most people don’t stop spending, they stop saving.
What Can You Do Now?
So, what does all this mean for the average Nigerian looking to protect and grow their savings?
Here’s what you can do:
1. Use High-Yield Savings Platforms
Traditional banks are no longer the go-to for serious savings. Most pay just 3 – 4% annually, barely enough to keep up with inflation. Where should you keep your savings?
Here’s a comparison of top savings options in Nigeria:
| Platform/App | Annual Interest Rate |
| Moni | 21% |
| Cowrywise | 19% |
| PiggyVest | 19% |
| Kuda Bank | 15% (MaxSave) |
| Stanbic IBTC Mutual Funds | 11%–13% |
| Traditional Banks | 3%–4% |
If you’re looking for short, mid or long-term savings options, Moni gives you more than just good returns — it gives your money a fighting chance against inflation (and of course, Trump’s Tariffs). With flexible savings plans and interest rates of up to 21% per annum, Moni helps you grow your money consistently, whether you’re saving daily, weekly, or monthly. While prices go up, your interest works just as hard to protect the value of what you’ve set aside. Inflation may eat into your budget, but it doesn’t have to touch your savings.
Start saving smarter with Moni and earn up to 21% interest.
2. Don’t Panic
Volatility can be terrifying, but panic selling or buying your investments is often the worst move. If you’re investing long term, Trump’s next tweet shouldn’t dictate your next trade. However, if you have investments maturing soon, this could be a time to reassess your exposure.
3. Think Long-Term
The smart investor stays in the game because time in the market is better than timing the market. Even with inflation and currency fluctuations, assets tend to recover over time. Keep a diversified portfolio and avoid emotional decisions.
What Stocks in the NGX should you be looking to invest in? Read the latest Stock Watch with Rafiki Report.
Trump’s tariff spree may have started as a U.S.-China trade war, but like most global events, its consequences are far-reaching. For Nigeria, it’s another reminder of just how tied we are to global markets and why we need both strategic policymaking and smarter personal finance habits. Whether you’re investing for the future or just trying to preserve the value of your money, the best thing you can do now is stay informed, stay calm, and stay intentional.
