How is Trump’s Tariff Impacting Africa’s Economic Plight?

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On April 2, the US president Donald Trump signed an executive order numbered 14257, launching a new wave of tariffs on imports from over 100 countries—including 51 nations in Africa. The order imposes tariffs ranging from 10% to 50%, citing the need to “restore trade reciprocity” and “protect American economic interests”. The new tariff not only shocked Africa’s exporters, but also dismantled the trade preferences represented by the African Growth and Opportunity Act (AGOA). The new tariffs will further increase the vulnerability of Africa, which already faces a single economic structure and strong external dependence. For African economies already struggling with limited industrial diversification and a heavy dependence on exports to the United States, the new tariffs risk devastates the situations. Africa’s economies have long relied on external trade preferences, with the African Growth and Opportunity Act (AGOA) being the most representative. Enacted by the US Congress in 2000, AGOA offers tariff-free access to the US market for eligible Sub-Saharan African countries, with the goal of promoting economic development and strengthening bilateral trade ties. The program allows qualified nations to export thousands of products—ranging from textiles and agricultural goods to minerals and auto parts—without paying duties. AGOA has been renewed multiple times, and the current extension is set to expire in September 2025. African countries have greatly benefited from this act, most directly through increasing their exports. Kenya’s garment exports increased from $55 million in 2001 to $603 million in 2022, accounting for 67.6 percent of its total foreign trade. Ghana has used AGOA to expand exports of non-oil products, such as textiles, from 206 million to $2.76 billion in 2000-2022. However, the exporting benefits are not without cost. Some Sub-Saharan countries become overly dependent to US’s commercial policy, if they lose the qualification in the system, thousands of unemployment would emerge. For example, 90% of Lesotho’s garment exports relies on AGOA. Meanwhile, AGOA encourages low-value-added exports (such as textiles and agricultural products) rather than high-tech or manufacturing upgrades, resulting in African countries stay at the lower end of the global industrial chain. Most importantly, the qualifications are harsh and susceptible to political influence. The US can disqualify a country at any time for reasons such as “human rights and democracy. Ethiopia, Uganda, Mauritania have been picked out for many times, which significantly shocked their industries.

















