The United States' recent proposal to increase tariffs on most imports by 10% has sparked concerns about the potential impact on African economies. A report by the United Nations Conference on Trade and Development (UNCTAD) reveals that the tariff hike could threaten an estimated $8 billion in African exports to the US, damaging decades of commercial partnerships.

The report highlights that many African countries, including those benefiting from the African Growth and Opportunity Act (AGOA), could be disproportionately affected by the tariff increase. These countries have limited export diversification, making them vulnerable to trade disruptions. Moreover, even with tariff waivers, African exporters often face logistical hurdles, stringent quality requirements, and complicated laws, making it challenging to compete in the US market.

Tunisia tops the list of African countries that could profit the US the most through increased tariffs, with potential custom duties of $313 million, or 0.38% of the US's total custom duties in 2024. Madagascar, Côte d'Ivoire, Botswana, and Algeria follow closely, with potential custom duties ranging from $290 million to $126 million.

The UNCTAD report emphasizes that imposing tariffs on these countries' exports would not significantly contribute to boosting US revenue collection but would instead harm vulnerable economies. The report notes that the contribution to the US trade deficit from small and Least Developed Countries included in the 57 trading partners is marginal, with 28 of these trading partners each contributing less than 0.1% of the total US deficit.

The proposed tariff increase has sparked concerns about the potential impact on African economies, particularly those that have benefited from preferential market access through initiatives like AGOA. The report suggests that the tariff hike could undermine the progress made in promoting trade and economic development in Africa.

The implications of the tariff increase are far-reaching, with potential consequences for economic growth, job creation, and poverty reduction in Africa. As the US and African countries navigate this new trade landscape, it remains to be seen how they will work together to mitigate the effects of the tariff hike and promote mutually beneficial trade relationships.

In conclusion, the proposed US tariff increase has significant implications for African economies, and it is essential for policymakers to carefully consider the potential consequences of this move. By working together, the US and African countries can find ways to promote trade and economic development while minimizing the negative impacts of the tariff hike.