US President Donald Trump’s tough trade policies are now affecting several African countries, with many set to suffer major economic setbacks due to high tariffs. President Trump announced the move as part of a broader trade war, saying the United States has been taken advantage of for years by countries both near and far. He declared the day he introduced the new tariffs as “Liberation Day”.
Under the new US policy, African countries are receiving different tariff rates. While some countries are charged the standard 10%, others face much higher rates. Lesotho is hit hardest, with a new tariff rate of 50%. Madagascar follows with 47%, Mauritius with 40%, and Botswana with 38%. Other countries affected include Algeria, Libya, and South Africa, with the latter facing a 31% tariff.
The figures were published in a report by the Office of the United States Trade Representative (USTR) and backed by data from Africa’s Report. However, the US government has not clearly explained how it arrived at the new rates. It only said that the calculations are based on trade data and “non-tariff barriers” such as copyright rules and safety standards.
In South Africa, the impact could be severe. The 31% tariff may reduce the country’s GDP growth by about 0.3%. South Africa’s economy only grew by 0.6% last year, and this move could worsen the situation. The country currently enjoys a $4 billion trade surplus with the US, largely due to exports of cars and agricultural products. These new tariffs now threaten to reduce South Africa’s earnings from these key sectors.
Experts warn that the trade tensions could also scare off investors and cause capital to leave African markets. In South Africa, political tensions with the US were already rising due to debates over land reform. These new tariffs could force the country into making unwanted trade concessions, such as allowing more American farming tools or giving the US easier access to South Africa’s mineral resources.
African leaders have largely remained quiet on the matter, but South African President Cyril Ramaphosa has spoken out. He described the tariffs as “punitive” and “unilateral”, and called for open talks with the US to form a fairer trade deal.