US President Donald Trump has introduced a sweeping new trade policy that’s already shaking up global markets — and Africa is paying close attention. Under the new plan, announced on Wednesday, goods from Kenya, Ghana, and Ethiopia will face some of the lowest tariffs globally, set at 10%, while other nations are being hit much harder.
Lesotho will see tariffs soar to 50%, followed closely by Madagascar at 47%, Botswana at 37%, Angola at 32%, and South Africa at 30%. The announcement marks a significant shift in US-Africa trade relations and could have wide-reaching implications for economies already grappling with inflation, currency pressure, and slow growth.
In Trump’s words, “April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.”
Tariffs and AGOA: Uncertain Times Ahead for African Trade
While the blanket 10% tariff will kick in from April 5, countries with reciprocal tariffs — including Nigeria, which charges about 28% on US goods — will face slightly higher levies. From April 9, Nigerian goods entering the US will be taxed at 14%. This figure, although lower than some other nations, is nearly half of what Nigeria currently demands in return.
This recalibration is already triggering uncertainty around the African Growth and Opportunity Act (AGOA), which grants duty-free access to the US for 32 sub-Saharan African countries. The act, set to expire in September 2025, has been instrumental in boosting exports — particularly for countries like South Africa, Kenya, Ghana, and Nigeria.
In 2024 alone, goods exported under AGOA totalled about $11.6 billion, with South Africa shipping auto parts, while petroleum dominates exports from Nigeria, Ghana, and Angola. Kenya and Lesotho, meanwhile, lean heavily on textiles and apparel.
The concern now is whether the new tariff system signals a shift away from the collaborative spirit of AGOA, especially at a time when many African economies are trying to rebound from post-pandemic strains and foreign exchange challenges.
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