Opinion

Can the Trump Trade Policies Affect the African Economy?

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Dr Muttaqa Yushau

<p><&excl;-- BEGIN THEIA POST SLIDER --><&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad4" id&equals;"quads-ad4" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>&nbsp&semi;<&sol;p><div class&equals;"R4uMvYOw" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<&excl;-- TV --> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"4399361195" &NewLine; data-ad-format&equals;"auto" &NewLine; data-full-width-responsive&equals;"true"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>&nbsp&semi;<&sol;p><div class&equals;"2mSSkatq" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<&excl;-- TV --> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"4399361195" &NewLine; data-ad-format&equals;"auto" &NewLine; data-full-width-responsive&equals;"true"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;<p>By MuttaqaYusha’u<&sol;p>&NewLine;<p>myushau&commat;gmail&period;com&period;<&sol;p><div class&equals;"MGeDbcTD" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;" &NewLine; data-ad-layout&equals;"in-article" &NewLine; data-ad-format&equals;"fluid" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"6550225277"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;<p>Since his re-election as President of the United States&comma; Donald Trump has vowed to raise trade tariffs&comma; particularly on Chinese imports&period; However&comma; his protectionist trade agenda extends beyond China&comma; affecting several countries&comma; including those in Africa&comma; even though Africa trades relatively less with the U&period;S&period; compared to other regions of the world&period;Trump’s trade policies are rooted in protectionism — an approach aimed at shielding American products from foreign competition&period; By doing so&comma; the administration seeks to boost domestic employment&comma; increase production&comma; and promote shared prosperity for Americans&period;<&sol;p>&NewLine;<p>However&comma; the impact of these policies will vary across countries&comma; depending on the extent of their reliance on the American market&period; The key question is&colon; Can Trump&&num;8217&semi;s trade policies significantly affect the African economy&quest;According to the United States Census Bureau&comma; Africa accounts for approximately 1&period;5&percnt; of total U&period;S&period; trade — a relatively small share&period; In 2023&comma; African exports to the U&period;S&period; were valued at around &dollar;32 billion&comma; with key sectors including crude oil&comma; textiles and apparel&comma; agricultural products&comma; automobiles&comma; and precious metals&period; Under the African Growth and Opportunity Act &lpar;AGOA&rpar;&comma; many African countries have enjoyed duty-free access to the U&period;S&period; market&comma; especially for textiles and agricultural goods&period;For instance&comma; Lesotho&comma; a small country in southern Africa&comma; is highly dependent on textile exports to the U&period;S&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>The textile industry in Lesotho employs around 12&comma;000 workers&comma; representing 42&percnt; of the total formal employment in the manufacturing sector&period; Similarly&comma; South Africa exports automobiles&comma; agricultural products&comma; and minerals to the U&period;S&period;&comma; with the auto industry alone contributing significantly to employment and foreign exchange earnings&period; A 10&percnt; tariff on African exports would likely slow down these sectors&comma; reduce export earnings&comma; and contribute to rising unemployment&period; Many companies would be forced to lay off workers&comma; deepening social and economic challenges&period;Moreover&comma; tariffs would make African goods less competitive in the U&period;S&period; market&comma; potentially eroding the gains made under trade agreements like AGOA&period; For example&comma; textile exports from Africa under AGOA account for about &dollar;1&period;3 billion annually&comma; providing jobs to tens of thousands of workers&comma; particularly in countries like Kenya&comma; Ethiopia&comma; and Lesotho&period; The imposition of tariffs on AGOA-eligible goods would undermine the core objectives of the agreement&comma; which aims to promote economic growth through trade&period; It would also discourage investment in sectors that had been built around preferential access to the U&period;S&period; market&comma; ultimately threatening job creation and industrialization efforts across the continent&period;One key lesson from these developments is the urgent need for Africa to deepen intra-African trade as a strategy for economic resilience&period; The African Continental Free Trade Area &lpar;AfCFTA&rpar;&comma; launched in 2021&comma; provides a major opportunity for African countries to integrate their economies and trade more among themselves&period; According to the United Nations Economic Commission for Africa &lpar;UNECA&rpar;&comma; AfCFTA has the potential to boost intra-African trade by 52&percnt; by 2025&comma; creating a larger market for African producers and reducing dependency on external markets&period;Recently&comma; the Director-General of the World Trade Organization &lpar;WTO&rpar;&comma; Dr&period; Ngozi Okonjo-Iweala&comma; stressed that the new U&period;S&period; tariffs&comma; especially those affecting sectors like textiles in Lesotho&comma; offer a wake-up call&period; She emphasized that African countries must seize this opportunity to strengthen their own markets&comma; foster regional value chains&comma; and build resilience against external shocks&period;In conclusion&comma; while Africa’s direct exposure to Trump&&num;8217&semi;s trade policies may seem limited&comma; the localized impacts on sectors like textiles&comma; agriculture&comma; and automobiles could be significant&period; These changes reinforce the importance of regional economic integration and the need for African countries to diversify their trading partners and domestic markets&period; Africa must act swiftly to turn challenges into opportunities and chart a more self-reliant and sustainable economic future&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad5" id&equals;"quads-ad5" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p><&excl;-- END THEIA POST SLIDER -->&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad4" id&equals;"quads-ad4" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<&sol;p>&NewLine;<script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-format&equals;"autorelaxed" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"1004305389"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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