Africa-US trade relations to shift after Trump unveils new tariff policy

Africa’s trade relationship with the United States (US) is about to experience a major shift, as president Donald Trump recently unveiled a new tariff policy targeting more than 180 countries, including several African nations.

Trump’s new trade strategy, which he has referred to as “kind,” is designed to counteract foreign tariffs, trade barriers and currency manipulation that his administration claims have placed US businesses at a disadvantage.

Under this policy, countries that don’t have specific trade agreements with the US will face a baseline 10% tariff on all imports into the country.

The concept behind reciprocal tariffs is simple: if a country imposes a high tariff on US goods, the US will respond by imposing a similar or equal tariff on goods from that country. For African countries like South Africa, Nigeria and Kenya, which have long-standing trade agreements with the US, this could introduce significant changes to existing economic ties.

The 10% baseline tariff ensures that countries not covered by the reciprocal tariff system will still face some level of protectionist measures when exporting to the US. This marks a clear departure from the more open trade policies that have previously defined US-Africa relations.

This policy is already causing ripples in the global trade landscape. Many nations, including African countries, may retaliate by imposing their own tariffs on US exports, creating a cycle of escalating trade tensions.

Critics argue that this could lead to higher consumer prices and economic instability, while supporters believe it will level the playing field and promote domestic job growth in the US.

Trump has labeled the implementation of these tariffs as “Liberation Day,” framing it as a necessary step to end what he views as unfair trade practices by other nations.

As global markets react, it remains to be seen whether these changes will strengthen the US economy or lead to a new era of trade disputes with countries, including those in Africa.

Below are the African countries along with their respective tax rates and the tax they charge the US:

South Africa – 30% (charges US 60%)
Madagascar – 47% (charges US 93%)
Tunisia – 28% (charges US 55%)
Egypt – 10% (charges US 10%)
Côte d’Ivoire – 21% (charges US 41%)
Botswana – 37% (charges US 74%)
Morocco – 10% (charges US 10%)
Algeria – 30% (charges US 59%)
Nigeria – 14% (charges US 27%)
Namibia – 21% (charges US 42%)
Ethiopia – 10% (charges US 10%)
Ghana – 10% (charges US 17%)
Angola – 32% (charges US 63%)
Democratic Republic of the Congo – 11% (charges US 22%)
Mozambique – 16% (charges US 31%)
Zambia – 17% (charges US 33%)
Tanzania – 10% (charges US 10%)
Senegal – 10% (charges US 10%)
Cameroon – 11% (charges US 22%)
Uganda – 10% (charges US 20%)
Gabon – 10% (charges US 10%)
Togo – 10% (charges US 10%)
Malawi – 17% (charges US 34%)
Liberia – 10% (charges US 10%)
Zimbabwe – 18% (charges US 35%)
Benin – 10% (charges US 10%)
Republic of the Congo – 10% (charges US 10%)
Djibouti – 10% (charges US 10%)
Rwanda – 10% (charges US 10%)
Sierra Leone – 10% (charges US 10%)
Sudan – 10% (charges US 10%)
Niger – 10% (charges US 10%)
Equatorial Guinea – 13% (charges US 25%)
Libya – 31% (charges US 61%)
Guinea – 10% (charges US 10%)
Chad – 13% (charges US 26%)
Mali – 10% (charges US 10%)
Mauritania – 10% (charges US 10%)
Burundi – 10% (charges US 10%)
Central African Republic – 10% (charges US 10%)
Eritrea – 10% (charges US 10%)
South Sudan – 10% (charges US 10%)
Comoros – 10% (charges US 10%)
São Tomé and Príncipe – 10% (charges US 10%)
Guinea-Bissau – 10% (charges US 10%).

• Business Insider