Africa: the future of AGOA amid the rise in import taxes by Donald Trump

African nations are among the most affected by the import tax increases announced by Donald Trump, with duties ranging from 10% to 50%. Lesotho is the hardest hit, facing a 50% tariff on its exports to the United States. It is followed by Madagascar (47%), Mauritius (40%), Botswana (37%), Angola (32%), Libya (31%), Algeria and South Africa (30%), and Tunisia (28%).

Other countries like Namibia and Ivory Coast will be subject to a 21% tax, while Zimbabwe (18%), Malawi and Zambia (17%), Mozambique (16%), Nigeria (14%), Chad (13%), Equatorial Guinea (13%), as well as the DRC and Cameroon at 11%, follow closely behind.

A significant setback for african industries

These new measures could seriously undermine several industrial sectors in Africa particularly the automotive and textile industries by driving up the cost of exports to the U.S. market. According to a report from the Office of the United States Trade Representative, exports from sub-Saharan African countries to the U.S. totaled USD 29.3 billion in 2023.

Raw petroleum (USD 7.3 billion), precious metals (USD 4.7 billion), and gemstones (USD 2.2 billion) remain the top African exports to the United States. However, the automotive sector (USD 1.7 billion) and the clothing industry (USD 1.4 billion) are likely to be heavily impacted by the rise in import duties.

South Africa (USD 14 billion in exports to the U.S.), Nigeria (USD 5.7 billion), Ghana (USD 1.7 billion), Angola (USD 1.2 billion), and Ivory Coast (USD 948 million) are among the main African suppliers to the American market.

What does this mean for AGOA ?

The potential impact of these new tariffs on the African Growth and Opportunity Act (AGOA) which allows sub-Saharan African countries to export some products to the U.S. duty-free remains unclear.

In 2024, exports under AGOA reached USD 8 billion, according to the Congressional Research Service. If the new tariffs are applied to products benefiting from AGOA, it could call into question the value of the program for African countries and further complicate their trade relations with the United States.