How Africa Is Responding to U.S. Tariff Policies
Summary
The document analyzes the effects of Executive Order 14257, which introduced a 10% universal tariff and higher country-specific tariffs (11% to 50%) on imports to the U.S. While mineral-exporting nations may find relief through exemptions for critical minerals, countries like Lesotho and Madagascar face severe economic risks, particularly in textiles. The authors discuss the precarious future of the Africa Growth and Opportunity Act (AGOA) and advocate for a coordinated continental strategy via the African Union and the African Continental Free Trade Area to mitigate these trade disruptions.
Key insights
- Executive Order 14257, issued April 2, 2025, established a 10% universal ad valorem tariff on imports from 190 countries, with higher country-specific tariffs between 11% and 50% for 57 countries. These specific rates were calculated by dividing the U.S. trade deficit with a country by its total 2024 goods imports, then dividing that result by two.
- Twenty African countries are subject to the higher country-specific tariffs, with Lesotho facing the highest rate at 50%, followed by Madagascar (47%), Mauritius (40%), Botswana (37%), Angola (32%), Libya (31%), and Algeria and South Africa (both 30%). Conversely, Egypt, Ethiopia, and Kenya are subject only to the 10% baseline tariff, while Burkina Faso, Seychelles, and Somalia face no increases.
- Mineral-exporting nations such as Angola, Nigeria, South Africa, Zambia, and the Democratic Republic of Congo may receive significant relief because the U.S. exempted over 1,000 products, including petroleum, gold, platinum, and copper, which comprise Africa's primary export basket.
- The tariffs pose a severe threat to Lesotho's textile and clothing industry, which employs nearly 36,000 people (mostly women) and was built on Africa Growth and Opportunity Act (AGOA) preferences. Meanwhile, the 10% universal tariff may actually benefit textile producers in Egypt and Kenya by giving them a competitive advantage over Asian competitors like India, Vietnam, and Bangladesh who face higher rates.
- The Africa Growth and Opportunity Act (AGOA) is scheduled to lapse on September 30, 2025. Because AGOA beneficiaries are not shielded from the new U.S. tariffs, its expiration could further jeopardize market access for textile exporters in Madagascar and Lesotho.
Cite the original document
- APA
- Kugler, K., & Washington, T. (2025). How Africa Is Responding to U.S. Tariff Policies. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/africa-response-us-tariff-policies
- Chicago
- Kugler, Kholofelo, and Tani Washington. How Africa Is Responding to U.S. Tariff Policies. International Institute for Sustainable Development, 2025. https://www.iisd.org/articles/policy-analysis/africa-response-us-tariff-policies.
- Wikipedia
- {{cite report |last1=Kugler |first1=Kholofelo |last2=Washington |first2=Tani |title=How Africa Is Responding to U.S. Tariff Policies |publisher=International Institute for Sustainable Development |date=28 July 2025 |url=https://www.iisd.org/articles/policy-analysis/africa-response-us-tariff-policies |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{kugler2025how, author = {Kugler, Kholofelo and Washington, Tani}, title = {{How Africa Is Responding to U.S. Tariff Policies}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jul, url = {https://www.iisd.org/articles/policy-analysis/africa-response-us-tariff-policies}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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