Trump's tariffs redraw the trade map: 7 African countries face new tariffs of 12.51 TP3T

Written by Amna Hassan

New US tariffs of 12.5% have come into effect on imports from seven African countries, in a move that opens a new chapter of trade tensions between Washington and the African continent, and presents exporters with challenges related to maintaining their competitiveness within the US market.

The new tariffs include imports from Algeria, Angola, Egypt, Libya, Morocco, Nigeria, and South Africa, following the conclusion of a U.S. Section 301 investigation into controls on products linked to forced labor.

Fees do not apply to all exports.

Despite the announcement of a uniform tariff of 12.5%, the decision does not include all goods exported from the seven countries, as Washington has exempted a large number of products, and goods already subject to other security or trade tariffs will not bear the new fees.

The list of exemptions includes vital sectors such as cars and spare parts, steel and aluminum, strategic metals, and a number of agricultural products, which makes the impact of the decision vary from one sector to another.

South Africa is the most affected.

South Africa appears to be among the countries most affected by the decision, given its heavy reliance on the US market for its industrial and agricultural exports. Despite Pretoria's efforts to persuade Washington to exempt it from the tariffs, the request was denied.

In contrast, the United States maintained exemptions for many important South African exports, including platinum group metals, citrus fruits, macadamia nuts, pharmaceuticals, civil aircraft, and certain chemicals and precious metals.

Investigations that lasted for months

The US procedures began last March and included public hearings and consultations with dozens of countries, in addition to thousands of comments submitted by companies and stakeholders, before Washington announced its final decision on July 23, to take effect on July 24.

Difficult choices for exporters

The decision requires exporting companies to review the customs classification of each product individually, to determine whether it is subject to duties or included in the list of exemptions.

Companies will also find themselves facing difficult choices, including bearing the additional cost, raising product prices, renegotiating with importers, or looking for alternative markets.

With continued uncertainty over US trade policy, governments of affected countries, most notably South Africa, affirm that they will continue dialogue with Washington in the hope of easing or eliminating tariffs in the future.

While the current decision remains in effect, it requires African exporters to reassess their trade strategies in the US market.