Prime Business AfricaThe U.S. tariff war has taken a dramatic turn, with former President Donald Trump launching sweeping new import tariffs. This move aims to correct long-standing trade imbalances and revive domestic manufacturing. The new policy imposes a baseline 10% tariff on all imported goods, escalating to 20% for EU products and 54% on Chinese imports.
International Backlash and Market Turmoil
China has retaliated with a 34% tariff on U.S. imports and export restrictions on rare earth minerals. The European Union and other trade partners are considering countermeasures, raising fears of a global trade war. Analysts warn that this standoff could disrupt global trade flows, destabilise markets, and test the post-pandemic economic recovery.
Join our WhatsApp ChannelChina’s retaliatory measures include imposing 10% tariffs on U.S. farm equipment, coal, gas, and electric trucks, affecting firms like Caterpillar, Deere & Co, and AGCO ². The country has also introduced export restrictions on rare earth minerals, which are vital to various high-tech and defense-related industries.
U.S. Labor Market Shows Resilience
Despite economic uncertainty, the U.S. labor market added 228,000 nonfarm payroll jobs in March 2025, exceeding expectations. The unemployment rate ticked up to 4.2%, while average hourly earnings increased by 0.3%. However, economists warn that rising input costs and supply chain disruptions could weigh on job creation and consumer sentiment.
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Nigeria’s Economy: CBN Reports Improvement
The Central Bank of Nigeria (CBN) has reported a significant improvement in the country’s Net Foreign Exchange Reserves (NFER), reaching $23.11 billion at the end of 2024. Gross external reserves also increased to $40.19 billion. The CBN projects a GDP growth of 4.17% in 2025 and an easing of inflation rates .
Nigerian Markets: Currency and Equities
The value of the Naira declined by 1.97% to close at ₦1567.02/$. The local bourse ended with the NGX All-Share Index declining by 1bp to close at 105,511.89. Market capitalization decreased to ₦66.15 trillion, with 18 advancers and 29 decliners.
Other Market Updates
• FGN Treasury Bills Market: Moderate activity, with demand focused on the 364-day bill.
• FGN Bond Market: Quiet session, with bearish sentiment prevailing.
• FGN Eurobond Market: Bearish note, influenced by Trump’s tariff speech and OPEC+’s decision to increase oil supply.
The U.S.-China trade war has proceeded in six stages between 2018 and today, with the current stage marked by significant increases in tariffs. The average U.S. tariffs on Chinese exports now stand at 42.1%, more than ten times higher than before the trade war began .
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