Despite U.S. tariffs pause, southern African economies under threat
Washington’s 90-day pause on higher tariffs is of little comfort to southern African economies facing the collapse of a preferential trade deal and a 25% hike on car imports, analysts say.
The African Growth and Opportunity Act (AGOA) — which provided duty-free access to the US market for some African products — had enabled certain sectors to flourish, for example allowing seven large automakers in South Africa to export tax-free to the United States.
The region’s citrus industry and textiles manufacturers, notably Lesotho’s jeans factories, were also beneficiaries.
They all expect to suffer under the 10% tariffs applied on imports to the United States by President Donald Trump, even though he announced a pause Wednesday of higher hikes announced for several countries.
“Mauritius, Madagascar, Lesotho, South Africa in particular will be impacted,” director of the Africa programme at the Chatham House think-tank, Alex Vines, told AFP.
“Textile exports will be massively hurt and the 25% tariff on car exports is very problematic for South Africa,” he said.
-AFP