The African government has appointed a special envoy to be sent to Washington to negotiate with President Trump’s representatives before the July 9 deadline.
JOHANNESBURG – As mutual tariffs imposed by the US were expected to begin on July 9th, the African government has appointed a special envoy to be sent to Washington to negotiate with President Donald Trump’s representatives before the deadline.
African countries, which make up the world’s poorest regions, will soon be attacked by as many as 50% of their duties. Trade experts said many people could no longer afford exports to the favorable US market, and the country should negotiate a path to lower tariffs.
A week later, Trump enacted a 90-day suspension on almost all US trade partners and trade bloc (China) tariffs.
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Reaching out his administration to power will be “an important step towards rectifying non-inherited trade arrangements by these countries and fully coordinated with the United States on economic and national security issues,” according to Trump’s executive order.
Kenya’s trade and investment expert Roy Mutuni told the Epoch Times that some of these countries hope to agree to more imports from the US to correct trade imbalances and provide priority access to resources, minerals and “unique African agricultural products” in exchange for lower tariffs.
“African countries are financially powered and are not in a position to respond to their own tariffs on American products, like in richer regions,” Mutooni said. “They want to be able to negotiate the path to lower tariffs, as the economic harm done by sucking it up by Trump throwing them out of the US market could be greater than they do.”
A study by the Washington Center for Strategic and International Studies found that Africa’s total exports to the United States have increased by 43% over the past 20 years from $28 billion in 2000 to $40 billion in 2024.
Workers will collect cotton in the field of Sokrogbo in Benin on January 13th, 2025. Olympia de Maismont/AFP via Getty Images
According to financial experts, US tariffs can wipe out the entire African economic sector, potentially losing the potential hundreds of thousands of jobs lost in a country with already highest unemployment rates in the world.
They predict that, along with the new tariffs from the US administration and China’s retaliation, will result in a significant decline in investment in Africa, causing harm to the continent’s economic development.
Anne Bernstein, director of South Africa’s Development and Business Centre, said tariffs will strike the continent with more force than other regions due to their reliance on imports.
“There are no domestic manufacturing bases in the country as most of Africa is not yet industrialized,” she told the Epoch Times. “We need to import most of what we need. As all these products face higher tariffs, higher costs force African prices.”
David Monyae, director of the Centre for Africa and China Studies in Johannesburg, said tariffs and subsequent reorganization of global trade could lead to a backslide in the global economy.
“Other major African trading partners, particularly in Europe, can ease imports from Africa in favor of their own goods and exporters close to their home,” he told the Epoch Times.
President Bill Clinton signed the AGOA 25 years ago to promote trade between the US and Africa.
Ken Matambo, a Botswana economist who previously served as the country’s minister of finance and economic planning, said African countries, which are bear the brunt of the US high tariffs, are Aga’s biggest beneficiaries.
“This is because the revenue generated under Asian exports to the US has produced what Trump considers as an unfair trade imbalance. The advantage of Anna means that some countries will export to the US more than imports,” he told the Epoch Times.
“At the end, Agoa was never meant to be mutual.”
The loss in revenues will disappear about 0.3 percentage points from gross domestic product, which increased just 0.6% last year, according to David Murangga of the Department of Business and Economics at the University of Johannesburg.
He told the Epoch Times that the US’s 31% obligation on South African goods would be a serious blow to the country’s agricultural sector.
“The US traditionally imports many South African fruits, especially citrus fruits,” Muranga said. “The South African car manufacturing industry will also be hit hard.”
These sectors collectively employ one million people, he said.
Meanwhile, Trump has exempted important minerals. This is what America needs for its own economic development, energy, safety and security.
“It would have been stupid to impose strict tariffs on these as America is all about chromium and manganese from South Africa, as well as other minerals and metals that are particularly useful in making weapons and weapons,” Mhlanga said.
South African President Cyril Ramaphosa has criticized US tariffs as “punitive”, “forced” and “unilateral.” He said the tariffs would force South Africa to force strong trade ties with other markets, particularly in Southeast Asia, China, India and Europe.
“These barriers contribute to a 78% reduction in US poultry exports to South Africa from $89 million in 2019 to $19 million in 2024,” the White House fact sheet said.
Lesotho, a small enclave country surrounded by South Africa, also faces 50% tariffs. Sando’s economy relies almost entirely on textile exports to the US, but sources most of its imports from South Africa.
Lesotho’s trade minister, Mokety Sherriel, told the Epoch Times that US tariffs would close at least 11 factories and spend 12,000 jobs.
Other countries facing major export obligations to the US include Madagascar (47%). Mauritius (40%); Botswana (37%), Angola (32%), Libya (31%), and Algeria (30%).
Madagascar exported $733.2 million in goods to the United States in 2024, mostly textiles and imported only $53.4 million in American products, resulting in a massive trade deficit.
As a result, the US has imposed a tariff of nearly 50% on the island nation. This is a move that threatens the textile industry and the employment of 60,000 people.
The Epoch Times contacted the White House for comments and did not receive a reply upon publication.
Tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit that harms the US economy, according to the statement.
The collection targets “harmful economic policies and practices” that undermine America’s ability to produce essential goods for the people and the military, according to the White House.
