On April 2, President Trump announced flat-rate tariffs of up to 25 percent on key African exports from countries such as Lesotho, South Africa, Nigeria, and Kenya. Global markets have reacted strongly, with the New York Stock Exchange declining markedly immediately after the announcement, undermining the livelihoods of millions of workers, not just in America and globally, but more importantly, African workers who have very few alternative opportunities. These imposed tariffs are avoidable provocations to the US’s trading partners and exacerbate poverty for many poor and developing economies, especially those in Africa. ITUC-Africa rejects these whimsically induced and punishment-laden tariffs. The tariffs are not intended to advance trade and the global economy, but rather serve as a show of force and bravado that would harm both the global economy and trade.
The tariff announcements sow more confusion and uncertainty than they promise. On the one hand, there is AGOA, with its tariff-free arrangement, and on the other, there are Trump’s outlined tariffs, ranging from 10% (applicable to Kenya, Ethiopia, and Ghana) to 30% (for South Africa) and 50% (for Lesotho). Lesotho faces the highest tariff at 50 percent, while sending 20 percent of its total exports to the United States. Madagascar follows at 47% (with 16% of total exports going to the US), Mauritius at 40% (12%), Botswana at 37% (9 %), Angola at 32% (3%), Libya at 31% (4%), South Africa at 30% (9%), Algeria at 30% (6%), Tunisia at 28% (4%), and Ivory Coast at 21% (5% of total exports going to the US).
These tariffs are inflicting severe economic damage across multiple sectors. The apparel and textiles industries face a significant drop in demand. Equally, vital sectors such as agriculture, mining and energy are under threat. Agricultural exports, which support numerous rural communities, are expected to decline as American buyers withdraw. The mining sector, a cornerstone of many African economies, and the energy industry, essential for industrial growth and household stability, are similarly vulnerable. Production costs will escalate, revenues will fall, and job losses will become increasingly evident. Moreover, Official Development Assistance (ODA) cuts from the USA and other economies in the Global North have left Africa’s most vulnerable economies exposed, and the working class is currently enduring the most tremendous hardship ever.
Tariffs are taxes. When tariffs are increased, producers, distributors, sellers, and businesses pass the new tariff costs on to end users by raising the prices of goods and services. Today, many African economies are under wage freezes, partly due to austerity measures imposed as a condition of debt repayment. The corresponding inflation from Trump’s tariff hikes will only worsen the Purchasing Power Parity (PPP) of the average African household. Aside from the job losses that will follow, we fear that hunger and misery will deepen in most African families and communities. Therefore, we urge President Donald Trump to reconsider and reverse these tariff hikes.
While the US tariff hikes are damaging to global trade, we wish to seize this moment to reiterate our call to African governments and the African Union on the need to advance a genuine and timely integration of the African economy. We are pleased that the Guided Trade Initiative (GTI) is already in place, providing a valuable platform for intra-African trade. However, it is now imperative to advance beyond this initial stage and achieve full trade facilitation under the African Continental Free Trade Area (AfCFTA). Full implementation of the AfCFTA will remove persistent bottlenecks, harmonise tariff structures, improve necessary trade facilitation systems and infrastructure, including skills development and respect for workers’ rights and enhance intra-African trade, thereby fostering a resilient and dynamic economy.
African governments and the African Union must act with urgency and resolve. Unity, integration, and decisive action are essential, and we call upon governments, unions, and progressive civil society organisations to collaborate in finding ways to harness this new development in a positive manner. By embracing the full potential of the AfCFTA, we can stimulate transformative growth in Africa and safeguard our workers.
Workers must not bear the cost of a trade war that privileges the few over the many. It is incumbent upon us to seize this moment to build a robust and equitable economic framework for our continent.
Akhator Joel ODIGIE
FOR AND ON BEHALF OF AFRICAN WORKERS.