African countries must diversify trade relations, analysts say in wake of Trump's tariff hike

Record ID: 1987966

  • Title: African countries must diversify trade relations, analysts say in wake of Trump's tariff hike
  • Date: 3rd April 2025
  • Summary: JOHANNESBURG, SOUTH AFRICA (APRIL 3, 2025) (REUTERS) (SOUNDBITE) (English) POLITICAL ECONOMIST, ISAAC KHAMBULE, SAYING: “The most important thing for African countries is to sit down and try to understand as to where the blockchain is - how do they then promote trade amongst each other? How do they also search for common markets outside of an African context? And as I’ve i
  • Embargoed:
  • Keywords: AGOA Africa Tariffs Trade Trump agriculture exports farming
  • Location: VARIOUS
  • City: VARIOUS
  • Country: South Africa
  • Topics: Africa,Commodities Markets,Economic Events
  • Reuters ID: LVA006387503042025RP1
  • Aspect Ratio: 16:9
  • Story Text: In the wake of U.S. President Donald Trump unveiling global reciprocal tariffs on most goods imported to the United States on Wednesday (April 2), South Africa was hit with a 30% hike.
    The latest tariffs are in addition to the 25% imposed on all vehicles and car parts imported into the U.S., which will kick in from Thursday (April 3).
    South Africa's exports of vehicles and parts into the United States are estimated at over $2 billion and could be hard hit by the levies.
    Several African countries were hit by some of the highest tariffs announced by U.S. President Donald Trump on Wednesday, including levies of 50% on goods from Lesotho, 47% for Madagascar, 40% for Mauritius, 37% for Botswana and 30% for South Africa, the continent's biggest exporter to the U.S.
    Analysts told Reuters the tariff hikes should empower African nations to look at other trade partners within the region and furthermore explore markets in the Middle East and Asia.
    The tariffs also compound the pain for Africa after Trump's administration dismantled USAID, the government agency that was a major supplier of aid to the continent, and specifically cut bilateral aid to South Africa.
    However, Wandile Sihlobo,an economist at South Africa’s Agricultural Chamber of Business said this is an opportunity for Africa to explore other markets also affected by the tariffs and leverage on its agricultural prowess.
    The AGOA trade accord is due to expire in September, and the raft of tariffs suggests that a renewal of the deal, a major part of U.S. policy towards the continent since the 1990s era of President Bill Clinton, is extremely unlikely.
    It was unclear whether AGOA tariff exemptions on certain goods would continue to be applied between now and September in the wake of Trump's tariff barrage.
    (Production: Sisipho Skweyiya)
  • Copyright Holder: REUTERS
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