Public Management

U.S. Tariff Hike Puts Pressure on Africa to Boost Trade Within the Continent

U.S. Tariff Hike Puts Pressure on Africa to Boost Trade Within the Continent
Monday, 07 April 2025 15:24

• New U.S. tariffs of up to 50% hit imports from 185 countries, including 51 in Africa
• Key African exports like oil, minerals, and textiles could be severely affected
• Experts say the move underscores the urgent need to strengthen intra-African trade

The recent U.S. decision to raise import tariffs has sent shockwaves around the globe—and Africa is feeling the heat. On April 2, President Donald Trump announced new tariffs that could go as high as 50% on products coming from 185 countries. More than a quarter of those affected—51 countries—are in Africa.

The official reason from the White House? A push to protect American industries from what it calls unfair competition and "non-reciprocal" trade relationships. But behind the headline lies a more aggressive protectionist move that’s likely to force countries to choose between pushing back and finding new trade strategies.

Africa caught in the crossfire

While big economies like China, Canada, and those in Europe are already working on countermeasures, African countries don’t have the same tools. They’re at risk of being sidelined in a global trade shakeup they didn’t start.

Some of the continent’s largest economies—South Africa, Nigeria, Egypt, and Algeria—rank among the top 50 exporters to the U.S. These exports are mostly made up of raw materials: oil, metals, and minerals. Ironically, these are the same sectors where the U.S. is trying to ramp up domestic production. Nigeria, for example, may now struggle to meet its export goals for kerosene from the massive Dangote refinery, which had pinned its hopes on the U.S. market.

But it’s not just raw commodities that are at risk. African manufacturing is also beginning to take a hit. In Benin, the new Glo-Djigbé Industrial Zone (GDIZ) began shipping garments to the U.S. in 2023. By 2024, clothing had grown to make up 5.7% of the country’s exports to America. Kenya and Egypt are also major textile exporters to the U.S., and Morocco sends over machines and electronics. These countries now face real uncertainty.

Trade reset: Look inward

So what’s next? African countries now face a tough choice. They can lower their own tariffs to maintain access to the U.S. market, but that risks flooding their economies with cheap American products and weakening local industries. Or they can start looking elsewhere.

Europe and Asia might seem like natural alternatives—but the most sustainable solution may lie closer to home. Intra-African trade currently accounts for less than 20% of the continent’s total trade volume, one of the lowest rates globally.

That’s why the African Continental Free Trade Area (AfCFTA) is so critical. It offers a once-in-a-generation chance to reduce the continent’s reliance on foreign markets and build strong value chains within Africa itself. But progress on the ground has been slow, and that needs to change.

The spike in U.S. tariffs is more than just a challenge—it’s a wake-up call. With 1.4 billion people and vast natural resources, Africa has what it takes to become more self-reliant and resilient. But it must act fast. The time to turn inward and strengthen regional trade is now.

This article was originally written in French by Moutiou Adjibi Nourou

Then edited in English by Firmine AIZAN

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Nile.ag secures $11.2 million in equity funding led by Cathay AfricInvest Innovation Fund• Capital to expand digital agriculture tools and...
• KCB Group is in discussions with Ethiopia’s central bank following a 2024 law that allows foreign banks to operate locally.• The group may obtain a...
• FirstRand receives approval to take over HSBC's South African assets, clients, and staff• Move supports expansion of investment banking and...
• CBN gives forex bureaus until December 31, 2025, to meet new capital rules• Fewer than 10% of operators were compliant as of June 2025, says ABCON• Over...
Most Read
01

BCEAO lowers main rate from 3.50% to 3.25% effective June 16, 2025 Inflation eased to 2.3% in...

BCEAO Cuts Key Rate to 3.25% to Stimulate Regional Growth
02

• WAEMU’s inflation dropped from 2.2% in March to 1.5% in April 2025• BCEAO attributes the decline t...

WAEMU Inflation Rate Falls to 1.5% in April 2025
03

• FirstRand receives approval to take over HSBC's South African assets, clients, and staff• Move sup...

FirstRand to Acquire HSBC's Clients and Assets in South Africa
04

• BOAD and JICA sign €200 million loan deal to support West Africa’s growth corridor plan.• Fun...

BOAD Secures €200mln from Japan’s JICA to Boost Regional Corridors
05

• Ghana aims to secure LBMA license to boost refinery access to global markets• Reforms include gold...

Ghana Launches Reforms to Pursue LBMA License for Gold Refineries
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.