Africa: Relief after Donald Trump backs down on tariffs
Suspension welcomed but uncertainty persists
US President Donald Trump ‘s decision to suspend the application of certain tariffs for 90 days has been greeted with relief in several African countries, including South Africa, Côte d’Ivoire and Madagascar. Initially, Pretoria was facing a 30% tax, notably on its citrus exports, a sector vital to its economy.
“We were relieved by this announcement, especially as it coincides with the launch of the export season,” said Boitshoko Ntshabele, CEO of the Citrus Growers’ Association (CGA). However, the 10% global tax imposed by Washington remains in force, largely nullifying the benefits offered by AGOA, the agreement that allowed African countries to export free of charge to the United States.
A direct impact on the agricultural and industrial sectors
As the world’s second-largest citrus exporter, South Africa is still hoping to obtain a lasting tariff exemption, pointing out that its exports do not compete directly with those of the United States, since they are counter-seasonal. But beyond the agricultural sector, the automotive industry also remains under pressure. The 25% surtax on vehicles is still in place, affecting a strategic sector of South African industry.
For Ayabonga Cawe, a member of South Africa’s International Trade Commission (ITAC), it’s not just about the numbers:
“Uncertainty slows investment, complicates plant location decisions, and slows job creation.”
Faced with this trade volatility, Pretoria is stepping up its bilateral discussions with Washington while exploring new export markets.
A welcome respite in Abidjan and Antananarivo
In Côte d’Ivoire, the three-month moratorium is seen as a window of opportunity. The United States accounts for 4% of Ivorian trade, led by cocoa exports. Agriculture Minister Kobénan Kouassi Adjoumani was reassuring about the situation, saying the country could adapt.
Madagascar’s private sector, which remains dependent on AGOA for several products, welcomes the suspension with relief, while calling for a lasting stabilization of trade rules.
Conclusion: A respite, but not a guarantee
While the temporary suspension of U.S. taxes offers a breath of fresh air to many African economies, it also highlights the fragility of trade agreements in times of political instability in Washington. For many countries on the continent, the priority now remains to diversify their economic partners and build more resilient trade alliances.
