US President Donald Trump’s tariffs announcement has sent shockwaves through the global trade system, with several African countries facing significant tariffs on their exports to the US. The move is likely to have far-reaching consequences for businesses and people across the continent, potentially forcing producers to seek alternative trade partners.
Southern African Countries Hit Hard
Lesotho, a small Southern African country, has been hit with the highest tariff rate of 50%. The country is still reeling from the shock of Trump’s sweeping aid cuts, which have gutted HIV response efforts across the region. Other Southern African countries affected include Madagascar (47%), Mauritius (40%), Botswana (37%), and Angola (32%).
Other African Countries Affected
Nigeria, Africa’s largest economy, faces a 14% tariff rate, while South Africa, another major economy, faces a 31% tariff rate. The US has also imposed a 25% tariff on foreign-made cars, which will affect South Africa’s vehicle exports to the US. Other African countries affected include Algeria (30%), Cameroon (12%), Chad (13%), Democratic Republic of the Congo (11%), and several others.
Impact on African Economies and Trade
The tariffs are likely to override the African Growth and Opportunity Act (AGOA), a decades-long open trade agreement that allowed African manufacturers to export goods to the US duty-free. This could jeopardize the creation of tens of thousands of jobs and undermine the growth of African economies reliant on US trade. The AGOA framework, established in 2000, has helped grow the continent’s exports of textiles, steel, and agricultural products to the US.
Reactions from African Governments
South Africa’s government has called the tariffs “punitive” and pledged to seek redress with Washington. The US government claims that South Africa charges a 60% tariff on US goods, while Lesotho charges 99%, and Madagascar levies 93% tariffs on US goods. Trump has criticized South Africa’s land reform policies, claiming they discriminate against the country’s white minority population.
Consequences and Future Implications
The tariffs may lead to a shift in trade dynamics, with African countries exploring alternative markets and partnerships. The impact on AGOA and the global trade system will be closely monitored, as the US takes a protectionist stance. The move has sparked concerns about the potential consequences for African economies and the global trade system.