Even before the consequences of US aid cuts are felt in Africa, the US president has caused a new surprise for African economies. In particular, by announcing a series of tariffs. These new measures, including an initial 10% tax on all imports and additional “reciprocity duties” on certain countries, could significantly affect major African economies already facing unfavorable global economic conditions.
South Africa, Nigeria, and Kenya in the Crosshairs
South Africa, Nigeria, Kenya, and other major trading partners now face increased trade barriers, with Trump designating them as the “worst offenders” of international trade.
This measure, touted by the Republican leader as a proclamation of economic autonomy, provoked a strong negative reaction from the affected nations. The South African presidency described these tariffs as punitive and detrimental to common prosperity.
Variable rates depending on each country
Trump’s new tariff schedule imposes variable rates on African exporting countries:
- South Africa: 30%
- Lesotho: 50%
- Madagascar: 47%
- Mauritius: 40%
- Botswana: 37%
- Nigeria: 14%
- Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal, Liberia: 10%
The White House defended these actions, accusing these nations of imposing significant tariffs on American products or implementing policies considered detrimental to U.S. economic interests. “These countries have been exploiting the United States for decades,” Trump declared during a fiery announcement at the White House.
A Double Whammy for Africa
As several African countries feel the effects of cuts in US aid, these tariffs are being implemented. Particularly against USAID, which previously provided support for health, education, and a wide range of humanitarian programs. Trump’s announcement, upon taking office, of a freeze on billions of dollars in aid has forced many fragile economies to explore alternatives.
Economists fear that the combination of trade limits and reduced assistance could hamper growth in regions already facing debt crises and currency instability.
How will Africa react?
April 5 marks the start of the 10% base tariff, followed by the introduction of higher rates for some countries on April 9. African government officials now face difficult decisions:
- Negotiate exemptions?
- Retaliatory tariffs?
- Accelerate the shift toward alternative markets like China?
For decades, U.S. trade policy toward Africa has emphasized preferential agreements like the African Growth and Opportunity Act (AGOA) to encourage African exports. However, the harsh tariffs implemented by Trump signal a major shift: protectionism is taking precedence over cooperation.
As African leaders consider their future actions, the question remains: will this tariff war lead to painful reconciliation or will it usher in a new wave of economic self-sufficiency?
