The Voice of Africa

Are Trump’s Tariffs a Wake-Up Call For Africa?

Written By Vincent Lofaso

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From Lesotho to Nigeria, the tariffs imposed by U.S. PresidentDonald Trump have significantly impacted African trade, with key economies across the continent feeling the effects. You might want to hold onto your jeans a little longer because President Trump has just imposed a 50% tariff on imports from Lesotho, a small African nation that is one of the top suppliers of denim to the U.S. The tariffs on Lesotho are the highest rate imposed on any African country, but they are not the only onesaffected. The jasmine rice from your local African grocery store, the yams from Nigeria – they are all about to become much more expensive. Countries such as Nigeria (14%), South Africa(30%), Botswana (37%), and Mauritius (40%) are also facing steep new tariffs, some of which are higher than 10%.

The 10% baseline tariff imposed on all African countries has dealt a significant blow to the Continent. In 2024, Africa exported $32 billion worth of goods to the United States,ranging from agricultural products such as yams, cocoa, and fruits to textiles, minerals, and light-manufactured goods. Many of these goods previously entered the U.S. duty-free under the African Growth and Opportunity Act (AGOA). However, the new 10% price hike makes them less competitive overnight, impacting jobs, investments, and consumer demand across the continent.

Kenya was significantly impacted by Washington’s tariffs. Last year, the East African country exported $600 billion in textiles, tea, and flowers. With a 10% tariff, Kenyan exporters may have to absorb the cost, leading to smaller profits, layoffs, and slowereconomic growth. The same applies to Ghana, Nigeria, Ethiopia, Rwanda, and Senegal, all of which built industries around AGOA-backed U.S. market access. While a 10% tariff may sound small, in global trade, where margins are thin, it is catastrophic.

Lesotho, with a population of 2 million, was the hardest-hit African nation due to a 50% tariff. Maseru’s main export is textiles, including jeans and apparel, and the current U.S. tariff on Lesotho stands at 99%. Lesotho’s textile sector supports 40,000 jobs, many of which are held by women. A 50% tariff on Lesotho could collapse factories, increase unemployment, and devastate an already fragile economy. Lesotho exported $230 million to the United States and imported $300 million, reflecting the country’s economic challenges and inability to afford most U.S.-produced goods. Maseru has sent a delegation to Washington to discuss a deal, hoping that the 90-day suspension may reduce the tariff to 10%. However, even at 10%, the tariffs will impose significant constraints on the small African nation.

Similar to Lesotho, Madagascar was hit with a 47% tariff. Its primary exports are apparel and textiles, which also fall under the AGOA. The current U.S. tariff on Madagascar stands at 93%, impacting $700 million in exports, and putting Antananarivo at risk. Factories operating at thin margins may shut down, leaving thousands of Malagasies jobless.

Mauritius faced a 40% tariff, impacting its main industries,including textiles, manufacturing, and financial services. The current U.S. tariff on Mauritius stands at 80%, which would deliver a major blow to its export-driven economy. Other affected nations include Botswana with a 37% tariff, Angola at 32%, Libya at 31%, Algeria and South Africa at 30%, and Nigeria at 14%.

If Washington is willing to impose such high tariffs on some of Africa’s most trade-compliant economies, it raises concerns about the future of U.S.-Africa trade relations. The African Growth and Opportunity Act (AGOA), established in 2000, aimed to grant African countries duty-free access to the U.S. market, creating over 300,000 jobs on the continent andsupporting billions in non-oil exports, including apparel, auto parts, and other goods. However, Washington’s tariffs effectively nullify the benefits of the AGOA. With African goods facing tariffs of 10%, 30%, or even 50%, the purpose of the AGOA is called into question. This move bypasses Congress, undermining a trade deal that has been in place for over 20 years without warning.

U.S. market access is no longer assured, even for its partners. Africa must reconsider its reliance on U.S. trade policies. This issue extends beyond tariffs; it encompasses trust, stability, and the continent’s economic future. Africa has the opportunity tostrengthen intra-continental trade and bolster the African Continental Free Trade Area (AFCTA). Additionally,diversifying export markets to the European Union (EU) and Asia, enhancing regional trade, boosting local industries,reducing dependency on raw material exports, and renegotiatingtrade terms to secure mutually beneficial agreements are crucial steps forward.

Africa can adopt a more nuanced approach that leverages the benefits of AGOA while enhancing regional integration and fostering self-reliance. Rather than abandoning AGOA entirely, Africa could find ways to complement it with regional integration efforts and self-reliant trade policies, creating a more balanced and resilient trade system. By investing in infrastructure, technology, and human capital, Africa can improve its competitiveness and attract both domestic and foreign investment, regardless of the future of the AGOA. The decision to renew AGOA or build a self-reliant trade system is not an either/or proposition. Africa should pursue a more nuanced approach that leverages the benefits of the AGOAwhile strengthening regional integration and fostering self-reliance.

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