Trump tariff: Africa economies tarrif slashed, but still faces setbacks

Nwali Chidozie

African Economies are faced with adjusted  “reciprocal tariffs” signed into law by President Donald Trump on Thursday. The Executive order, which imposes tariffs ranging from 10% to 41% on a wide array of goods from numerous African countries, has been described by leaders as a significant setback to years of economic cooperation and development.

The new adjustments hits some countries harder than others. South Africa and Libya face a 30% tariff, while Algeria also sees a 30% rate. Tunisia is hit with 25%, and a long list of nations, including Angola, Botswana, Ghana, Kenya, and Nigeria, will see tariffs of 15% on their exports to the U.S.

The tariffs, which go into effect in seven days, are seen as a direct threat to the African Growth and Opportunity Act (AGOA), a U.S. program that has provided duty-free access for thousands of African products since its inception.

For many countries, AGOA has been a cornerstone of their export-led growth strategies, particularly in sectors like textiles and agriculture.

In a statement, the African Union Commission expressed “deep disappointment” with the move, stating that it undermines the principles of partnership and mutual benefit; stating it could “severely disrupt” supply chains and lead to job losses in vulnerable economies.

However, Lesotho, a mountain country located in southern Africa, whose textile industry was largely built to take advantage of AGOA, is bracing for a massive economic shock. Earlier, a 50% tariff on the country’s goods had already caused significant disruption and job losses. While the new tariff is 15%, it is still seen as a devastating blow to the country’s most significant private-sector employer.

In Nigeria, a government spokesperson called the tariffs “unilateral and punitive,” arguing that they are based on a flawed premise of trade deficits. The spokesperson noted that the U.S. trade deficit with Nigeria is a natural result of the difference between the two economies and should not be used as a pretext for trade barriers.

Trade experts have highlighted  that the policy could push African nations to seek alternative trade partners, particularly from China and the European Union, which could lead to a broader geopolitical shift.

Despite the widespread criticism, the Trump administration has defended the move, stating that the tariffs are a necessary step to correct what it sees as unfair trade practices and to protect American jobs.

U.S. Trade Representative Jamieson Greer said in a statement that the new system would create a “win-win partnership” and that the administration had engaged in negotiations with numerous countries to reach what it considers fair agreements.

However, for many African nations, the latest action feels more like a punishment than a partnership.