How African economies are responding to Trump’s tariff wave
A new wave of tariffs announced by U.S. President Donald Trump has triggered global financial disruptions and prompted urgent responses from African nations- many of which were blindsided by the policy shift.
The abrupt move, unveiled on April 2, slaps tariffs ranging from 10% to a staggering 60% on dozens of countries, including 32 low-income African nations that have long benefited from duty-free access to the U.S. market.
The decision, part of Trump’s broader push to reset global trade on strictly bilateral terms, effectively guts the African Growth and Opportunity Act (AGOA)—a 25-year-old program designed to boost U.S.- Africa trade by waiving tariffs for qualifying African countries. With AGOA set to expire this September, the new tariffs may mark its premature and unilateral end.
South Africa
South Africa, Africa’s most industrialised economy, was hit with a 31% tariff on U.S. imports. Despite the blow, President Cyril Ramaphosa has ruled out retaliation, stating his government “will not act out of spite.” Instead, the country is seeking negotiations for exemptions or quota-based trade terms. “This move essentially nullifies the benefits we enjoyed under AGOA,” Ramaphosa said, adding that South Africa will “forge global alliances” to diversify its export partners. "To say we will impose reciprocal tariffs without first understanding how the U.S. arrived at 31% ... would be counterproductive," trade minister Parks Tau told a press conference, adding that South Africa’s average tariff on imports was 7.6%. According to local reports, South African citrus exporters—who rely heavily on the U.S. market—warn that up to 35,000 jobs could be at risk due to the new tariffs.
Nigeria
In Nigeria, the continent’s largest economy, the Central Bank moved quickly to stabilise financial markets. On Sunday, it sold nearly $200 million to shore up the naira after global markets were rattled by the U.S. tariff announcement. A drop in global crude oil prices—sparked by fears of an impending slowdown in global trade—added pressure on the oil-dependent nation. “These tariffs have introduced new dynamics for oil-exporting countries such as Nigeria,” the Central Bank of Nigeria (CBN) said in a statement.
Smaller nations
While the tariffs are disruptive for larger economies, they could be devastating for smaller African nations like Lesotho, Mauritius, and Madagascar—low-income countries heavily reliant on textile and apparel exports to the U.S.
In a twist, the U.S. had originally helped build these countries’ industries by allowing them to import third-country fabrics duty-free under AGOA. That exemption has now been effectively erased.
“These new tariffs will cripple the apparel sectors in these countries,” noted trade analysts at the Center for Global Development. “The U.S. created the enabling environment for this growth, and is now abruptly pulling the rug out.”
