Taiwo Oyedele, Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, has raised concerns over US President Donald Trump’s newly announced plan to establish an External Revenue Service. This service is designed to levy tariffs and taxes on foreign nations as part of Trump’s broader economic strategy.
President Trump unveiled the initiative during his inauguration speech on Monday, presenting it as a key policy to protect American workers and families. Trump emphasized his administration’s intent to overhaul the US trade system by taxing foreign countries instead of US citizens.
“We will tariff and tax foreign countries to enrich our citizens,” Trump declared. “Massive amounts of money will pour into our treasury from foreign sources, restoring competence and effectiveness to our federal government. The American dream will soon be back and thriving like never before.”
Concerns Over Global Trade
Oyedele, responding on his X handle, warned that Trump’s proposed tariffs and taxes could disrupt international trade and exacerbate the complexities of the global tax system.
“This move could disrupt international trade and further complicate the already complex global tax system,” Oyedele stated. He emphasized the importance of Nigeria’s ongoing tax reforms to navigate potential challenges and capitalize on opportunities arising from such developments.
Potential Tariff Implications
Trump’s announcement follows threats to impose a 100% tariff on BRICS nations—Brazil, Russia, India, China, and South Africa—if they adopt a new BRICS currency to replace the US dollar as the global reserve. His strategy also includes a potential 25% tariff on imports from US allies like Canada and Mexico and a 60% tariff on goods from China.
Critics argue that such policies could drive inflation in the US, as importers—who pay tariffs—typically pass the costs on to consumers through higher prices. Additionally, Trump has floated the idea of universal tariffs on all imports, ranging from 10% to 20%.
Under the current system, tariffs are collected by US Customs and Border Protection, a division of the Department of Homeland Security. While Trump envisions tariffs as a primary revenue source for the US government, critics highlight the risks of increased economic tension and strained international relations.
Strategic Shift
Trump’s economic rhetoric signals a significant shift, with tariffs potentially replacing income tax as a major source of government revenue. However, Oyedele’s critique highlights the broader consequences for global commerce, urging countries to proactively address potential ripple effects in international trade and tax systems.
As Trump begins his second term with bold economic initiatives, global leaders and economists alike are closely monitoring the potential fallout of the US’s protectionist policies.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
