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Arogundade Oluwasegun, founder of Leagile Supply Services, has said that ongoing trade tensions and increasing reciprocal tariffs are causing major disruptions in global supply chains, with serious economic consequences for both businesses and consumers.
In an interview, Oluwasegun stated that while the aim of reciprocal tariffs is to promote fair trade between nations, they are also making goods more expensive and harder to access. “Reciprocal tariffs, although intended to balance trade relations between nations, are inadvertently inflating costs and disrupting established supply chain relationships,” he said. “These retaliatory measures create a ripple effect that impacts everyone, leaving behind enormous economic and commercial ramifications from manufacturers to end consumers across the board.”
The effects are being felt in major economies. According to consulting firm BCG, new tariffs could impact 44 per cent of all US imports, valued at $1.4 trillion, which may lead to a 10 to 14 per cent drop in EBITDA margins for companies in North America. The World Trade Organization (WTO) projects a 0.2 per cent fall in global merchandise trade volume in 2025. However, the organisation anticipates a 2.5 per cent recovery in 2026.
Oluwasegun noted that the situation is affecting not only luxury items or advanced technology but also everyday goods. “Essential goods are becoming less accessible, particularly for lower-income families,” he said. “The broader economic implications are significant, potentially worsening inequality and reducing overall consumer spending.”
He added that many companies are being forced to revise their sourcing and logistics models. “Tariffs disrupt the delicate balance of supply-chain operations. Businesses must navigate new regulatory environments, cultural differences, and logistical challenges, all of which can undermine efficiency and profitability,” Oluwasegun said.
Small and medium-sized enterprises (SMEs) are especially vulnerable in this environment. “SMEs are the backbone of many economies, yet they face disproportionate challenges in this tariff-laden landscape,” he said. “Without targeted support, we risk losing a significant segment of our entrepreneurial ecosystem.”
To address these challenges, Oluwasegun called for stronger cooperation between public and private sector players. He said there is a need for better systems to track global value chain risks and promote resilience through practical policies. He also urged African leaders to fast-track the Africa Continental Free Trade Area (AfCFTA) and improve local standards to enhance access to global markets.
Chisom Michael
Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.
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