The higher import tariffs on goods and their impacts on a country like Nigeria would not be easy to navigate. But it is not impossible.

The United States, U.S., slapped countries with a new set of tariffs after President Trump returned to the White House. A direct tariff of 14% was placed on Nigerian exports along with a global base of 10%.

Nigeria is starting to adjust to the effects, but most importantly, the indirect impacts of tariffs, beginning with import substitution.

The indirect impact comes from the tariff placed on countries like China, where Nigeria imports the majority of its household and industrial items. The global giant got over 100% tariffs on U.S. imports.

The impacts of the tariffs are multi-faceted for every country because of the interconnected nature of global trade.

Tariff Ripple Effects on Nigeria

Down this chain of tariffs are a bunch of consumers and retailers in Nigeria and many other countries who import goods from both the U.S. and China.

Indirect impacts due to tariffs on China don’t sound like a lot, but it is starting to grow on businesses and retailers in Nigeria. The rising production costs in the U.S. due to the import of components from China and vice versa are trickling down to consumers in all markets, including Nigeria.

Many who have to claim their imported goods from the U.S. at the border have said they would have to raise prices as a result of tariffs. Nigerian households and shoppers are paying for the Trump tariff months down the line.

Temu, Shein, Konga and Jumia are adjusting prices to capture the excess paid in tariffs. However, pricing decisions would depend on the retailer’s efforts to lower dependence on the U.S. and China and source more products elsewhere.

Temu is Chinese, which means most of its products come from China and are then sent to consumers in Nigeria. Shein, which also has China as its primary source of products, is about to move its manufacturing hub to Japan.

Others, including Jumia and Konga, also source the majority of their products from China.

Major retailers are facing one more issue trying to keep shoppers by maintaining cheaper prices. So far, only Temu has been able to achieve this, as many Nigerians have said that prices have not changed for them on the site.

However, not every retailer has the luxury of keeping prices down, and customers are settling for the cheapest platform. It appears Temu is winning in Nigeria.