USA raise tax duty for Africa

Trump’s tariffs on African countries – how much tax duty will be imposed on goods & services from each African country.

As of April 2025, President Donald Trump has enacted significant tariff measures affecting numerous countries, including several in Africa. These tariffs are primarily targeted at nations that impose a Value Added Tax (VAT) on imports, with the United States seeking to implement reciprocal tariffs to counteract what it perceives as unfair trade practices.

Overview of New Tariff Policies
President Trump has directed his administration to impose new tariffs on countries that charge VAT on goods entering the U.S. market. He stated that these tariffs would be reciprocal, meaning that the U.S. would match the tariffs imposed by other countries on American goods. Trump emphasized that VAT systems are akin to tariffs and that routing goods through other countries to bypass these policies would not be tolerated.

The rationale behind this policy is to address perceived trade imbalances caused by VAT systems, which Trump argues place an unfair burden on U.S. exports. By implementing reciprocal tariffs, the U.S. aims to level the playing field for American industries.

Impact on African Countries
The new tariff measures have varying implications for African nations, particularly those heavily engaged in trade with the United States. For example, North African oil-producing countries like Libya and Algeria have been subjected to substantial tariffs of 31% and 30%, respectively. However, these tariffs exclude energy exports, which constitute the majority of their sales to the U.S., limiting the overall impact.

Similarly, Morocco, despite being a longstanding ally with a free-trade agreement with the U.S., now faces a 10% levy on its goods. Moroccan officials have expressed disappointment, highlighting the country’s active cooperation with the U.S. on various fronts.

Additionally, countries like Lesotho have been adversely affected, facing a 50% U.S. tariff despite their minimal economic threat to America. This move has strained global trade relations and risks empowering nations like China, which is positioning itself as a more reliable economic partner by removing tariffs on goods from 33 African countries.

Focus on Kenya
Kenya, a key U.S. trade partner in East Africa, is significantly impacted by these new tariff policies. The U.S. administration’s decision to impose tariffs on countries with VAT systems directly affects Kenya, which charges a standard 16% VAT on imported goods. This VAT is applied to imports from countries like the U.S., while Kenyan exports to these countries remain zero-rated, making them more competitive in foreign markets.

The introduction of reciprocal tariffs by the U.S. means that Kenyan exports to the American market could now be subject to additional duties, potentially offsetting the benefits previously gained under the African Growth and Opportunity Act (AGOA). Since 2000, Kenya has exported approximately $6.5 billion worth of garments duty-free under AGOA, positioning it as a leading apparel exporter among African nations. Additionally, Kenyan exports of nuts have totaled around $577 million under AGOA.

The imposition of these tariffs could lead to several adverse outcomes for Kenya:
1. Increased Production Costs: Businesses relying on U.S. imports may face higher costs due to additional tariffs, leading to increased production expenses.
2. Job Losses: Sectors heavily dependent on exports to the U.S., such as textiles, manufacturing, and agriculture, may experience job cuts if demand declines due to higher prices.
3. Reduced Export Revenues: The competitiveness of Kenyan products in the U.S. market could diminish, resulting in decreased export revenues and potential economic strain.

In response to these developments, Kenyan officials and business leaders are exploring avenues to mitigate the impact. Strategies include negotiating trade exemptions with the U.S. to preserve AGOA benefits, seeking alternative markets to diversify export destinations, and reassessing VAT policies to align with international trade standards.

Global Economic Concerns
The implementation of such widespread tariffs has raised concerns about global economic stability. Experts warn that these measures could lead to increased consumer prices, reduced disposable income, and potential retaliation from affected countries. The unpredictability of trade policies adds a layer of uncertainty to international markets, affecting both businesses and consumers worldwide.
In summary, the new tariff policies introduced by the U.S. under President Trump have profound implications for African countries, with Kenya facing particular challenges due to its trade relationship with the U.S. As these policies continue to evolve, it is crucial for affected nations to engage diplomatically and strategically to safeguard their economic interests and maintain stable trade relations.

Duty tax increase in numbers:

• Lesotho 50%
• Madagascar 47%
• Mauritius 40%
• Botswana 37%
• Angola 32%
• Libya 31%
• South Africa 30%
• Algeria 30%
• Tunisia 28%
• Namibia 21%
• Zambia 17%
• Malawi 17%
• Zimbabwe 18%
• Mozambique 16%
• Nigeria 14%
• Equatorial Guinea 13%
• Chad 13%
• DR Congo 11%
• Cameroon 11%
• Egypt 10%
• Morocco 10%
• Kenya 10%
• Ethiopia 10%
• Togo 10%
• Ghana 10%
• Tanzania 10%
• Senegal 10%
• Uganda 10%
• Gabon 10%
• Liberia 10%
• Benin 10%
• Congo Brazzaville 10%
• Djibouti 10%
• Rwanda 10%
• Sierra Leone 10%
• Eswatini 10%
• Sudan 10%
• Niger 10%
• Guinea 10%
• Mali 10%
• Cabo Verde 10%
• Burundi 10%
• Mauritania 10%
• Gambia 10%
• Eritrea 10%
• South Sudan 10%
• Guinea Bissau 10%
• Central African Republic 10%
• Sao Tome & Principe 10%
• Comoros 10%