In a move that could significantly impact global trade, US President Donald Trump has announced a new trade policy that imposes varied tariffs on African economies. The policy, which sets a baseline tariff of 10%, will take effect on April 5, with reciprocal tariffs beginning on April 9. The announcement has sparked uncertainty over the future of trade agreements, particularly the African Growth Opportunity Act (AGOA), which is set to expire in September 2025.

Under the new policy, goods from Kenya, Ghana, and Ethiopia will face the lowest tariffs, at 10%. This is significantly lower than the rates imposed on other African countries, such as Lesotho (50%), Madagascar (47%), Botswana (37%), Angola (32%), and South Africa (30%). Nigeria, which is one of the largest economies in Africa, will face a 14% levy on its goods to the US, nearly half of the duties the West African nation imposes on imports from the US.

The new trade policy is part of Trump's efforts to bring manufacturing back to the US, increase tax revenues, and respond to unfair trade policies. However, the move has been met with concern from African countries, which already grapple with economic downturns. The policy could upset global trade and slow growth in developing countries like Kenya, which is heavily reliant on exports to the US.

The AGOA, which grants duty-free access to the US market for 32 sub-Saharan African countries, is a significant trade agreement that has boosted economic growth in Africa. South Africa, Nigeria, Ghana, and Kenya are the biggest beneficiaries of AGOA, with exports averaging $11.6 billion in 2024. The uncertainty over the renewal of AGOA has sparked concerns over the future of trade between the US and Africa.

The impact of the new trade policy will vary across African countries, depending on their trade relationships with the US. Countries like South Africa, which exports vehicle parts under AGOA, and Nigeria, Ghana, and Angola, which primarily export petroleum products, may be more heavily affected by the new tariffs. On the other hand, countries like Kenya, Lesotho, and Tanzania, which focus on textile and apparel exports, may benefit from the lower tariffs.

As the global trade landscape continues to evolve, African economies will need to adapt to the new reality. The uncertainty over trade agreements and tariffs will require African countries to diversify their trade relationships and explore new markets. The future of trade between the US and Africa remains uncertain, but one thing is clear: the new trade policy will have far-reaching implications for African economies.

In conclusion, Trump's new trade policy marks a significant shift in the global trade landscape. The varied tariffs imposed on African economies will have different impacts on different countries, and the uncertainty over the future of trade agreements will require African countries to be adaptable and innovative in their trade relationships. As the world watches the unfolding drama of global trade, one thing is certain: the future of trade between the US and Africa will be shaped by the decisions made today.