ADDIS ABABA, Ethiopia: The African Union (AU) on Monday expressed deep concern over the impact of tariffs imposed by the United States on several African nations, warning that the move threatens decades of “mutually beneficial trade and cooperation” between the two regions.
In a statement, AU Commission Chairman Mahamoud Ali Youssouf called for the US government to reconsider its decision, urging Washington to strengthen its longstanding partnership with Africa, which is rooted in shared values and mutual aspirations.
“The tariffs pose a significant challenge to the progress we have made in enhancing our economic ties and fostering mutual growth,” said Youssouf, according to an AU spokesman, Nuur Mohamud Sheekh.
Some African nations have been hit particularly hard by the new tariffs, which range from 50 percent for Lesotho—a small textile exporter—to 30 percent or more for South Africa, Madagascar, and Botswana.
The African Growth and Opportunity Act (AGOA), which has provided duty-free access to the US market for around 30 sub-Saharan African countries, is now under threat due to these new trade measures.
Under the AGOA framework, established in 2000, African countries have seen a significant increase in exports of textiles, steel, and agricultural products to the US.
The agreement has been credited with creating tens of thousands of jobs and boosting economic growth in many African nations. However, analysts warn that the US tariffs may jeopardise the future of AGOA, with the agreement’s renewal set for this year.
South Africa, a key beneficiary of AGOA, is among the hardest-hit by the tariffs. The country’s automotive sector, which accounts for 22 percent of its exports to the US, will face additional pressure from the new 25 percent tariff on foreign-made vehicles.
The South African government has expressed its opposition to the tariff hikes, with President Cyril Ramaphosa’s office describing them as “punitive” and stating they would serve as a barrier to trade and shared prosperity. The government has pledged to seek redress with Washington.
“South Africa remains committed to pursuing a mutually beneficial trade agreement with the US that will ensure long-term trade certainty,” the South African government said in a statemen.
Other countries in Southern Africa are also facing significant challenges. Lesotho has been hit with the highest tariff rate of 50 percent, while Madagascar faces a 47 percent tariff, Mauritius 40 percent, and Botswana 37 percent.
These countries, which benefit from AGOA, will now have to adjust to the additional financial strain brought on by the tariffs.
Kenya, which had a baseline tariff of 10 percent, has suggested that the new measures could present both challenges and opportunities.
The country may gain a competitive edge compared to other textile-exporting nations facing higher tariff rates.
The tariffs were introduced as part of US President Donald Trump’s broader protectionist trade agenda, which has shaken global markets.
Trump’s “Liberation Day” declaration earlier this week marked the US’s most significant turn towards protectionism since the 1930s.
The tariffs include a universal 10 percent duty on all US imports and additional tariffs on countries such as Nigeria and South Africa, which Washington has labelled as “worst offenders” for imposing high tariffs on US goods.