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Africa's Initial Response to Trump's "Liberation Day" Tariffs

Written by Tim Byrne | May 7, 2025 11:37:00 AM

In response to US President Donald Trump's ground-breaking "Liberation Day" tariffs released on the 2nd April 2025, African nations are now adopting a variety of different strategies to mitigate their economic impact, which in many instances could be substantial.​ Here is how some of the continent's best and worst affected nations have reacted so far:

Ivory Coast - the world's leading cocoa producer, faces a proposed 21% US tariff on its cocoa exports, which is currently under a 90-day suspension. This has raised concerns among local cocoa farmers who are already grappling with adverse weather and plant diseases. Agriculture Minister Kobenan Kouassi Adjoumani warned that such tariffs could have the effect of destabilising the local market, leading to increased cocoa prices and potentially negatively impacting American consumers. The government is considering raising export taxes and strengthening its ties with the European Union to secure alternative markets. ​

Nigeria - subject to a 14% tariff, Nigeria has opted against immediate retaliation. Trade Minister Jumoke Oduwole has emphasised Nigeria's commitment to engaging with his US counterparts and the World Trade Organisation to find mutually beneficial solutions. While crude oil, Nigeria's primary export to the US, remains largely unaffected due to its inelastic demand, non-oil sectors like agriculture will face challenges. The government is focusing on diversifying its export markets and strengthening intra-African trade through the African Continental Free Trade Area (AfCFTA). ​

Ghana - facing a 10% tariff on its exports, Ghana is exploring opportunities within the AfCFTA to mitigate the impact of Trump's recent actions. His new tariffs have eroded the competitiveness of key exports like cocoa, prompting the government to consider processing raw materials locally and enhancing intra-African trade to build economic resilience. ​

South Africa - is now facing a 31% import duty on all exports to the US, but has also opted against immediate retaliation in the short term. Instead, Trade and Industry Minister Parks Tau has announced plans to seek exemptions and quota agreements with the US, while accelerating efforts to diversify export markets across Asia, Europe, the Middle East, and within Africa itself. The government is also focusing on bolstering domestic industries affected by the tariffs, such as automotive manufacturing, agriculture, and metals.

Lesotho - is heavily reliant on diamond and textile exports to the US, and now faces a dire economic situation. The new 50% symmetrical tariff system threatens to dismantle the country's largest industries, potentially resulting in the loss of up to 40 000 jobs and a significant contraction of its GDP.​

Kenya - while subjected to the new universal 10% tariff increase, Kenya perceives an opportunity to enhance its competitiveness in the US market, especially in the textiles and apparel industries. Trade and Investments Cabinet Secretary Lee Kinyanjui has emphasised the potential for Kenya to attract businesses seeking cost-effective suppliers, given that some Asian competitors now face much higher tariffs.

At a broader level, the BRICS nations, including South Africa, have convened to formulate a collective response to the US trade policies. The bloc is preparing a joint statement criticising the US's unilateral trade measures and reaffirming their commitment to multilateral tariff negotiations. All of these developments underscore the urgency for African nations to reassess their trade dependencies and explore intra-continental trade opportunities. AfCFTA will emerge as an even more important pivotal platform to enhance regional trade resilience and reduce reliance on external markets. As the global trade landscape shifts, Africa's proactive measures will hopefully help safeguard its economic interests and promote sustainable growth amidst these new external challenges.