How Trump’s New Tariffs Are Reshaping Global Trade
President Donald Trump’s new tariffs have officially taken effect, triggering a wave of economic ripples across the globe, from Asia to Europe and Africa. The policy imposes a minimum 10% tariff on nearly all goods entering the United States, with even steeper rates aimed at countries accused of engaging in unfair trade practices.
This bold trade policy marks a turning point for global commerce, with significant implications for businesses, consumers, and supply chains, particularly in Africa. Many industries that rely on imports including retail, manufacturing, and logistics are expected to see rising costs, which could trickle down to businesses and consumers alike. African exporters, especially those in sectors like textiles, agriculture, and raw materials, now face added pressure to remain competitive in the U.S. market.
Effect on African Countries
Lesotho has been hit with the highest tariff rates in the latest trade measures announced by President Donald Trump on Wednesday.
Americans importing goods from the small southern African nation will now face a steep 50% tariff, the highest among all affected countries.
The United States has a significant trade deficit with Lesotho, which Trump cited as justification for what he calls “reciprocal tariffs.” The sweeping policy targets imports from dozens of countries, including 20 in Africa, all of which will face a minimum tariff of 10%.
Other African nations have also been hit with tariff hikes under the new trade policy. Madagascar faces a 47% tariff, making it one of the hardest-hit countries, followed closely by Mauritius at 40%, Botswana at 37%, and South Africa at 30%. These significant increases are expected to impact key industries such as textiles, agriculture, and manufacturing, which rely heavily on exports to the U.S. market.
Nigeria, Africa’s most populous country, is also affected, with a 14% tariff now imposed on its exports. This could have implications for Nigeria’s oil, agricultural, and manufacturing sectors, which depend on access to American consumers.
Meanwhile, several African nations, including Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal, and Liberia, will be subject to the baseline 10% tariff, despite having no trade deficit between them. For these countries, the new tariffs pose challenges to industries that depend on stable trade with America, potentially affecting investment flows and supply chain stability.
Key trade partners
Other key trade partners have also been hit with significant tariff increases. China faces a 34% tariff, while the European Union is hit with a 20% tariff. Japan and India are subjected to 24% and 26% tariffs, respectively. The United Kingdom and Brazil will both see a 10% tariff on their exports to the U.S. These higher tariffs are expected to disrupt trade relations and impact industries reliant on U.S. imports from these countries.
Response from Key Trade Partners
According to Reuters, major key trade partners have already begun implementing measures to protect their interests amid the escalating trade war.
European Union
European Commission President Ursula von der Leyen confirmed that the EU is finalising a package of measures in response to U.S. tariffs on steel. She added that the EU is “now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.” The U.S. has targeted the EU with a 20% reciprocal tariff.
China
China’s Ministry of Commerce strongly opposed the new tariffs, stating that Beijing “firmly opposes” the reciprocal tariffs and “will take countermeasures to safeguard its own rights and interests” in response to Trump’s 34% reciprocal tariff on Chinese imports.
Canada
Prime Minister Mark Carney made it clear that Canada will “fight these tariffs with countermeasures” and “act with purpose and with force.” Goods from Canada and Mexico are currently not subject to the new reciprocal tariffs due to the ongoing 25% fentanyl-related duties imposed by Trump, alongside 10% tariffs on Canadian energy and potash. A tariff exemption for goods complying with the U.S.-Mexico-Canada Agreement (USMCA) will continue indefinitely.
Mexico
President Claudia Sheinbaum responded by stating that Mexico would not engage in a “tit-for-tat on tariffs,” but would instead unveil a “comprehensive program” on Thursday to address the situation.
United Kingdom
Prime Minister Keir Starmer stated that the UK will continue efforts to negotiate a trade deal with the U.S., emphasizing that a trade war was “not in our national interest.” However, he also noted that the UK would only agree to a deal that was “the right one” and assured that “nothing is off the table” in terms of Britain’s response to the tariffs.
