AGOA's Demise: African Nations Brace for Tariff Impact

The U.S. government's imposition of high tariffs on African countries signals the likely end of the AGOA trade deal, which provided preferential market access. Affected nations, like South Africa and Kenya, seek new trade agreements. Experts predict increased reliance on China, as AGOA may not be renewed.

The U.S. government has announced significant tariffs on several African nations, effectively suggesting the termination of the AGOA trade initiative. Trade experts pointed out that these tariffs, reaching as high as 50%, mark the end of a program designed to aid African economies by providing preferential market access to the U.S.

Countries across Africa are expressing various reactions. South Africa is urgently pursuing new trade agreements with the U.S., while Kenya sees potential advantages in the textile sector, despite its 10% tariff. Simultaneously, the withdrawal of USAID aid further complicates economic conditions for nations already grappling with poverty and debt.

Analysts anticipate that these actions will drive African countries towards China, currently their largest trading partner. With AGOA set to expire in September, its renewal appears doubtful. This development underscores the urgency for African nations to diversify trade partnerships beyond the U.S.

(With inputs from agencies.)