The United States has opened talks with China aimed at reducing extreme tariffs that have stifled trade between the two countries — a move that could offer relief to small businesses globally, including in Nigeria.
U.S. Commerce Secretary Howard Lutnick confirmed the talks are geared towards "de-escalating" tensions caused by aggressive tariff policies introduced during former President Donald Trump's administration. These included 145% tariffs on Chinese goods and China's retaliatory 125% tariffs.
While largely geopolitical, these trade barriers have contributed to global price fluctuations, which have impacted small-scale importers and exporters in Nigeria and other developing markets.
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"Prices are going to stay stable once this policy is done," Lutnick said, hinting at broader price relief that could ripple into consumer markets.
Treasury Secretary Scott Bessent is reportedly leading the effort to reframe trade relations. Lutnick also suggested that new trade deals — not yet named — would be signed over the next three months.
For Nigerian MSMEs, especially those in retail, manufacturing, and agro-processing who rely on imports of raw materials or machinery from Asia or North America, any easing of trade restrictions could lower input costs and stabilize supply chains.
The announcement comes shortly after a limited U.S.-UK trade agreement, hinting at a wave of bilateral arrangements that may reshape the global business environment in the second half of 2025.
