With the arrival of U.S. President Donald Trump, some countries in Africa are being economically affected either positively or negatively.
Kenya, Ghana, and Ethiopia are among the African economies facing the lowest tariffs under Trump’s new trade policy.
Goods from these three countries will be subject to a 10% tariff, which is significantly lower compared to other countries in the continent, such as Lesotho (50%), Madagascar (47%), Botswana (37%), Angola (32%), and South Africa (30%).
Tailored Tariffs for Global Economies
On Wednesday, Trump announced tailored tariffs for countries globally. He claims that this move will bring manufacturing back to the U.S., increase tax revenues, and provide a response to unfair trade policies.
However, the plan, which sets a baseline tariff of 10%, could disrupt global trade and slow growth in developing countries like Kenya. These 10% universal tariffs will take effect on April 5.
Trump’s Vision for America’s Future
In his speech on Wednesday, Trump commented on this move by saying,
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.”
However, countries like Nigeria, Ghana, and Kenya, which are already struggling with economic downturns, could be negatively affected by this situation.
Impact on African Countries and AGOA’s Future
Goods from around 30 African countries—most of which apply 10% tariffs—will face the lowest rates globally.
Trump’s new trade policy also increases the uncertainty surrounding the renewal of the African Growth Opportunity Act (AGOA), which is set to expire in September 2025.
South Africa, Nigeria, Ghana, and Kenya were among the biggest beneficiaries of AGOA, which granted duty-free access to the U.S. market for 32 sub-Saharan African countries.
Thanks to this initiative, imports covered under AGOA reached a value of $11.6 billion in 2024.
South Africa exports vehicle parts under AGOA, while Nigeria, Ghana, and Angola mainly export petroleum products.
Meanwhile, Kenya, Lesotho, and Tanzania focus on textile and apparel exports.