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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.

Trump’s new global trade war is a vivid example of African economies’ reliance on the United States—and why that reliance is increasingly precarious. Africa’s largest economies, Nigeria (14 percent) and South Africa (31 percent), were among those on Trump’s “reciprocal” tariffs list. Southern African countries were particularly stroke, where Lesotho, a small country that Trump claimed “no one has heard of”, was hit with Africa’s highest 50 percent tariff. According to the data collected by Al Jazeera, other Southern African countries hit were Madagascar (47 percent); Mauritius (40 percent); Botswana (37 percent); and Angola (32 percent). These tariffs would have immediate impacts to those economies. In South Africa, The Citrus Growers’ Association said the impending reciprocal tariffs will be deeply damaging to South Africa’s largest agricultural export. 35,000 jobs in the country’s citrus-growing sector will be in danger. South Africa’s car manufacturing industry is one of the country’s key industries, with annual exports of about $2 billion, and one of its main export markets is the United States.
The implementation of the new tariffs would directly affect the export of the South African automotive industry. These without doubt could deteriorate South Africa’s concerning economic situation, as it has been experiencing stagnation for over 10 years (annual GDP growth less than 1%), with one of the world highest unemployment rates (32.6%). As one major engine of Africa’s economy, South Africa’s plight could possibly drag the entire continent. The impact to Lesotho would be more devastating, as the country imported $2.8 million goods from the US and exported $237 million in 2024, while the country faced the highest tariff in the continent. A common consequence across many African nations will be the further shrinking of already limited foreign currency earnings. Given the region’s heavy reliance on external financing and its historically high levels of foreign debt, these new tariffs could intensify fiscal stress—potentially pushing some countries closer to a debt trap.
African countries are seeking divergent way out. Majority of them choose not to retaliate but instead to seek diplomatic negotiations. The most affected countries, including Lesotho and Madagascar, have already sent delegations to Washington to request exemptions or relief. For example, the government of Lesotho successfully secured a 90-day suspension of tariffs, providing a window to negotiate lower rates with the United States. Madagascan vanilla exporters, on the other hand, are using the grace period to accelerate shipments in order to minimize financial losses. Meanwhile, several African nations are also promoting regional cooperation and pursuing export market diversification as long-term strategies to counter the economic fallout. The African Continental Free Trade Area (AfCFTA) is increasingly viewed as a crucial mechanism to boost intra-African trade and deepen regional economic integration. Most importantly, the current crisis reflected the urgent need to cut reliance to the US. Emerging countries including China and India are seen as promising alternatives, as they have the market to digest the exports and the willingness to increase influence in Africa.
Trump’s tariff war is more than a trade dispute—it is a signal that the rules of globalization no longer hold as they once did. The 21st century was meant to be the age of global integration. Whether that vision has ended remains unclear, but one thing is certain: globalization, at least for now, is on pause. The crisis also serves as a wake-up call to Africans: it is urgent to cut the reliance to foreign power and gain economic resilience through industrial upgrading, intra-African trade, and diversified partnerships.
By Xingchen Liu

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