The United States'(U.S.) trade policy is a complex and constantly evolving framework that is shaping both domestic and global trading as well as economic landscapes. Central to this policy are three core objectives: promoting American economic interests, strengthening national security, and enforcing trade laws.
American economic interests includes the expansion of market access for U.S. goods and services abroad, protection of American domestic industries against unfair foreign competition, and strengthening overall U.S. competitiveness globally. From a national security perspective, the U.S. trade policy focuses on supply chain resilience and safeguarding critical industries and technologies. Furthermore, these trade laws are enforced to ensure adherence to trade agreements, combat intellectual property theft, and address unfair subsidies.
Key tools in the U.S. trade policy include trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA), which establish rules for trade and address broader issues like labour standards and environmental protection. Tariffs are employed to protect domestic industries and as leverage in negotiations, while trade remedies like anti-dumping measures counter unfair trade practices. Export controls are also used to regulate critical goods and technologies.
Recent trends show a shift in policy, toward an "America First" trade approach, emphasizing protection for American workers and industries. The new President Trump administration has also displayed a high level of commitment to ensuring that the U.S. Trade policy, receives even more attention, in a move President Donald Trump has termed “Liberation Day”. The U.S. has implemented a 10% baseline tariff on all imports, with higher percentage tariffs on some specific countries, and others that the U.S. deems as ‘worst offenders’ who undermine America’s economic goals by imposing higher tariff on U.S goods. Some significantly affected trade partners by these new changes are China with a tariff rate of 54%(which includes earlier tariffs), Cambodia with a tariff rate of 49%, Vietnam at 46%, Thailand at 36%, South Africa at 31%, Japan at 24%, and the European Union with a tariff rate of 20%. Lesotho, was also significantly affected, with an additional 50% import tax.
The effects of changes in U.S. trade policy has undoubtedly being felt across the globe, with Africa experiencing notable impacts. Twenty African countries received reciprocal tariffs in the wake after the 10% baseline tariff was announced. These countries include Madagascar at 47%, Mauritius at 40%, Botswana at 37% and Nigerian exports, now standing at a rate of 14%. The African Growth and Opportunity Act (AGOA), which provides duty-free access to the U.S. market for eligible African countries, is at risk of becoming non-functional, as tariffs and shifting policies threaten its benefits. This could result in decreased African exports, affecting various industries, sectors and ultimately employment.
The imposition of US tariffs has affected exports from 51 African countries, targeting specific industries across the continent:
Country-specific impacts include:
Ghana: Apparel, cocoa derivatives, shea butter, and horticultural goods face tariff challenges.
Nigeria: Exports of textiles, cocoa derivatives, cashew products, and oil are impacted.
South Africa: Agribusiness (including wine and fresh produce) and the automotive sector are key targets. Notably, South Africa’s automotive exports to the US exceeded US$2 billion in 2024.
Angola: Oil exports suffer from heightened tariffs.
Lesotho: Textiles and diamonds are affected. According to figures from the White House, while Lesotho imported just $2.8 million (£2.1 million) worth of goods from the US in 2024, its exports to the US amounted to $237.3 million.
Kenya: Clothing exports are hit by tariff increases.
Egypt: Textiles are impacted.
Benin: Clothing exports face challenges.
Madagascar: Tariffs on textiles affect exports.
Collectively, African apparel exports to the US totalled US$1.4 billion.
Morocco: Machinery and electronics exports encounter higher costs.
All across Africa, raw materials such as oil, metals, textiles and minerals are subject to increased tariffs. The automotive industry is also subjected to a sweeping 25% tariff on foreign-made cars, raising production costs but reducing foreign exchange earnings.
Africa faces increased trade uncertainty, potentially discouraging investment and hindering long-term planning. Many African countries may diversify trade relationships in response, seeking partnerships with economies like China, a constant competitor to the U.S. Additionally, fluctuations in U.S. trade policy influence global commodity prices, critical for African economies reliant on commodity exports.
South Africa is amongst the few African countries that has been worst hit with reciprocal tariffs by the U.S. It is no surprise as diplomatic actions as well as disputes over certain laws in S.A. has caused recent drifts in the overall relationship between these two countries. After the 31% tariff slap, South Africa’s stance has been one of negotiations and talks on bilateral trade agreements with the U.S.
For many other African countries, the changes pose challenges to exports such as agricultural products and textiles, impacting their competitiveness in the U.S. market. The uncertainty could deter U.S. investment and may prompt countries to diversify its economy and explore new export markets. Local economic effects are also anticipated, including job losses in export-driven sectors. Despite this new change, many African countries are taking on a position of opportunity and strife to make the most of the tariff change. For Kenya, the country is committed to diversifying its exports and exploring opportunities in the sector of manufacturing and processing of new goods; their Trade and Investment Cabinet Secretary (CS); Lee Kinyanjui, has said.
While the 10% baseline tariff rate has been in effect from 5th April, 2025, reciprocal tariffs of 34% are set for 9th April,2025. Some economists say more African countries are likely to adopt strategies that encourage trade with the rest of the Global South, and look into new trading practises as well as alternatives U.S. trade policy remains highly responsive to economic and political dynamics, with consequences unfolding worldwide. African countries will need to adapt strategically to maintain stability and growth in this shifting environment.
Featured image: Photo by Rapha Wilde on Unsplash
