It is yet another challenging path for African economies after the White House imposed a baseline tariff of 10 per cent on all goods exported to the United States (US) by Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal, and Liberia.
The US government has also imposed steep tariffs on other African nations: 47 per cent on Madagascar, 40 per cent on Mauritius, 37 per cent on Botswana, 30 per cent on South Africa, and 50 per cent on Tanzania again — which may be a separate classification or an error. Nigerian exports will also face a significant increase, with tariffs rising by 14 per cent.
Outside Africa, several countries have also been hit hard by the fresh tariff regime. Vietnam faces a 46 per cent tariff, Sri Lanka 44 per cent, Bangladesh 37 per cent, China 34 per cent, Pakistan 29 per cent, and India 26 per cent.
Additionally, the Republican administration has introduced customs duties of 25 per cent on all imported cars, effective from 3 April.
“Our taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore,” President Donald Trump said on 2 April 2025 at the White House. He explained that the reciprocal tariffs were targeted at countries that treat the US “badly”.
Trump stated that his administration had adopted higher tariff rates to level the playing field in international trade and to counter “cheating” in the global economy. According to him, the US had been taken advantage of by “cheaters” and had been “pillaged” by foreigners.
These measures suggest a push for alternative global supply chain hubs, strengthening ties with countries seen as more strategically aligned. The intention appears to be to rebalance trade relations with nations perceived as unfair.
Musalia Mudavadi, Kenya’s Prime Cabinet Secretary, commented on 7 April 2025 that the current developments could have long-term implications.
“We must brace ourselves for a long ride. The measures that the US administration is putting in place will become very difficult to undo. It will take a couple of decades or more for some of those policy decisions to reverse.”
Worst offenders
South Africa, notably, is among the countries labelled as “worst offenders” by the US, a list that also includes China, Japan, and the European Union. According to the White House, various laws — including the International Emergency Economic Powers Act, the National Emergencies Act, and sections of the Trade Act of 1974 — provide the legal basis for these tariffs. They argue that reciprocal tariffs are the only effective way to fix trade practices contributing to large and persistent US trade deficits.
On 2 April 2025, President Trump signed an executive order — the Reciprocal Tariffs Executive Order — implementing a 10 per cent baseline tariff on nearly all US trading partners, effective 5 April, and an additional, higher tariff targeting 57 countries from 9 April.
These developments are occurring in a year when the US accounts for just around 2 per cent or less of total African exports. In 2024, for instance, the US imported $39 billion worth of goods from Africa — roughly what it imports from Mexico or Canada in just over a month.
In fact, the US imports over $1 billion a day from each of its two closest neighbours, more than it imports from the entire African continent in a year. South Africa and Nigeria are the only notable exceptions, accounting for roughly half of what the US imports from Africa.
Analysts believe the new tariff policy is more about compelling African alignment with US interests than responding to significant trade volume. Renaissance Capital Africa notes, “Trump’s tariffs won’t matter too much, assuming they’re just 10 per cent on Africa.
The key point is that the US is not the only economy in town. Yes, it is responsible for half the world’s current account deficit, so it matters — but it doesn’t matter too much to Africa.”
A reciprocal tariff is a trade policy instrument, usually imposed in response to similar measures taken by another country. The aim is to restore balance in trade between countries or customs territories. While not inherently good or bad, reciprocal tariffs can have mixed outcomes, depending on how they’re used.
Global markets
The new tariffs could present an opportunity for a reset. Countries affected by the hikes must reassess their strategies and potentially reposition themselves in global markets. Kenya, for example, could stand to benefit if it can position itself as an alternative sourcing hub for the US — especially in textiles and manufacturing sectors.
Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, believes there is a silver lining in the new 10 per cent baseline tariff. He argues that Kenya can now emerge as a competitive source for textiles and agricultural products, especially as other textile-exporting countries face much higher tariffs.
Through his X (formerly Twitter) account, CS Kinyanjui stated, “This presents an opportunity for investment in local textile production and value addition that could attract businesses seeking to avoid higher costs from traditional suppliers.”
He added, “With other textile-exporting countries facing much higher tariffs, Kenya could become an alternative sourcing hub for US buyers… We encourage investment in local textile production and value addition to attract businesses looking for cost-effective suppliers.”
The global impact of the tariff hikes has become increasingly apparent. Within days of implementation, global markets — especially in Europe and Asia — appeared more shaken than African markets. While countries targeted by higher tariffs were expected to feel the heat first, this has not necessarily been the case.
Billionaire Elon Musk has said he supports a “zero-tariff situation” between the US and the EU. Nevertheless, the Republican administration is moving forward with its policies.
Former US Treasury Secretary Larry Summers, who served under Barack Obama, criticised the policy, saying the administration “doesn’t have a coherent message on why it’s implementing the largest tax increase” seen in the US in 50 years.
Despite the obstacles, countries hit with higher tariffs still have export opportunities. While the increased tariffs present real challenges, they could also lead to increased focus on competitiveness. For countries like Kenya, this means tackling underlying issues — such as the high cost of doing business, over-taxation, expensive electricity, and limited liquidity.
Addressing these structural challenges could unlock the potential for a stronger export sector. With the right reforms, Kenya’s unique demographic profile could help support the growth of a resilient and globally competitive export economy.
