Policy House asks WTO to intervene in US tariffs on African countries

Policy House, an economic research and analysis firm, has implored the World Trade Organisation (WTO) to intervene in the recent global tariff blitz imposed by the United States.

On April 2, US President Donald Trump announced tariffs of at least 10 percent on all goods into the country.

Trump said the tariffs would create a hard reset on the US manufacturing industry, leading to a stronger economy and lower prices for consumers.

Nigeria and several African nations are among the over 50 countries across the world, including China, the UK and Canada, hit by the tariffs which range from 10 percent to as high as 49 percent.

In a statement issued on Friday, Taiwo Akerele, executive director of Policy House, criticised Trump’s latest protectionist policy.

Akerele warned that the tariffs could have serious consequences for global trade stability.

Citing five years of data, Akerele said Nigeria has maintained a net positive trade balance with the US, primarily due to petroleum and associated products, which account for 79 percent of the trade volume between both nations.

“This tariff increase directly contradicts the spirit of the 1992 African Growth and Opportunities Act (AGOA), designed to foster trade between the US and sub-Saharan African countries,” Akerele said.

“While African nations have faced challenges in maximising the benefits of AGOA due to existing economic constraints, these new tariffs will further impede their progress. Tariffs are ultimately borne by consumers.

“Reciprocal tariffs are inevitable. Every tariff imposed will be met with a countermeasure, escalating into a damaging trade war.”

He called on the WTO to intervene and “uphold its responsibilities during this critical period”.

Akerele added that the current situation threatens global trade and could escalate into a major international trade war.