The US authorities’s imposition of steep tariffs on African nations alerts the tip of the Agoa commerce deal, an initiative meant to assist African economies develop via preferential entry to US markets, commerce specialists stated on Thursday.
A number of African international locations have been hit by a few of the highest tariffs introduced by the White Home on Wednesday, together with levies of as much as 50% on items from Lesotho, 47% for Madagascar, 40% for Mauritius, 38% for Botswana and 31% for South Africa, the continent’s greatest exporter to the US.
International locations have reacted in another way to US President Donald Trump’s tariffs. South Africa stated it urgently needs a brand new commerce take care of the US, whereas Kenya stated the ten% tariffs it faces might give it a aggressive edge in textiles over worse-hit Asian rivals.
Many are already scuffling with excessive poverty ranges and debt. Madagascar faces meals shortages attributable to drought and exacerbated by cyclones. Tiny Lesotho has one of many world’s highest HIV/Aids an infection charges.
The tariffs additionally compound the ache from Trump’s dismantling of USAid, the federal government company that offered a lot of the continent’s support, and his administration’s resolution to chop bilateral help to South Africa.
Analysts have been fast to foretell that the US transfer would additional bolster China’s already dominant position as a buying and selling associate and investor in Africa.
“China is more likely to play up its dedication to extra predictable rules-based financial engagement, which might push international locations even nearer to its orbit,” stated David Omojomolo, Africa economist at Capital Economics.
Goodbye, Agoa
Agoa, which grants qualifying African nations duty-free entry to the US market, is because of expire in September. And the raft of tariffs suggests a renewal of the commerce accord — a cornerstone of US coverage in the direction of Africa because the Nineteen Nineties — is now unlikely.
“The reciprocal commerce announcement coverage will pull the Agoa rug from below our ft,” stated economist Adrian Saville, a professor on the Gordon Institute of Enterprise Science.
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A senior official at Kenya’s overseas ministry stated he anticipated tariff exemptions below Agoa to stay legitimate till September. The Washington-based African Coalition for Commerce, nevertheless, believed they’d not. “That is clearly not a constructive signal for the outlook for renewal of Agoa,” the organisation stated in a memo to members on Thursday.
The US is South Africa’s second largest bilateral buying and selling associate after China. “The tariffs affirm the urgency to barter a brand new bilateral and mutually helpful commerce settlement with the US,” South Africa’s presidency stated in a press release.
Commerce minister Parks Tau stated South Africa shouldn’t take a “retaliatory method” in the direction of Washington however proceed to have interaction whereas additionally diversifying its commerce partnerships. A brand new commerce take care of Washington seems like a mountain to climb, nevertheless, given Trump’s latest hostility in the direction of Pretoria.
He has repeatedly attacked a land reform coverage meant to deal with the legacies of colonialism and apartheid, characterising it as discrimination towards white folks.
Kenya stated that the newly imposed 10% US tariffs would increase prices for Kenyan companies however famous that main textile-exporting rivals Vietnam, Sri Lanka and Bangladesh have been dealing with steeper levies.
“Kenya might place itself instead sourcing hub for US consumers. This presents a possibility for funding in native textile manufacturing,” its commerce ministry stated.
Trump’s newest tariffs are along with the 25% imposed on all automobiles and automotive elements imported into the US, which can kick in from Thursday. This can be a explicit risk to South Africa, which exports over US$2-billion/yr in automobiles and automotive elements to the US.
Different main South African exports to the US embody valuable stones and metals, iron and metal, equipment, aluminium merchandise and citrus. — Nqobile Dludla, Nelson Banya, Olivia Kumwenda-Mtambo, Catherine Schenck, MacDonald Dzirutwe, Aaron Ross and Lovasoa Rabary, (c) 2025 Reuters
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