African exporters have welcomed a temporary reprieve from new US tariffs after President Donald Trump suspends the 30% import tax planned for 90 days, but the big picture remains uncertain.
South Africa’s citrus industry – the second largest in the world – is one of those who feel at ease with a narrowly avoiding being hit by new taxes at least temporarily.
“This is especially because this came when we started packing fruit into the US and exporting it,” Boytzko Nshavere, head of the country’s Citrus Growers Association, told RFI.
“We are currently facing a 10% tax, just like our competitors. But we continue to say that South Africa should be exempt as exports are in the off-season compared to US citrus production.”
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The automotive industry is not blessed. A 25% tariff on automobile imports is maintained.
“Uncertainty brings resistance to decision-making to invest capital, build factories, and do everything that creates jobs,” Ayabonga Kawe, South Africa’s International Trade Control Commission, told RFI.
“That’s a big concern for us. But we’re not alone — it’s not just South Africa.”
The US is the third largest buyer of South African-made vehicles, importing around 25,000 cars each year, representing around R35 billion (1.8 billion euros).
The approximately 86,000 jobs in the automotive sector are directly dependent on African growth and opportunity laws, which have given African countries tax-free access to the US market since 2000.
However, the new 10% tariff reduced its positive effects. South Africa’s Trade Minister Parkstau told French news agency AFP that baseline tariffs “essentially nullify Agoa’s profits.”
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Relief of Ivory Coast and Madagascar
Coast Ivory, where 4% of the trade flow is sent to the US, sees delays in the application of tariffs as an opportunity to avoid further damage.
“We won’t lose because consumers will ultimately bear the outcome,” Agriculture Minister Covenin Kouasi said in an interview with RFI.
In Madagascar, where some products face a 47% import tax, the business community is also welcoming the reprieve.
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“This is a relief for the country, the private sector and the government,” said Ernest Rhinekana Zafivanona, Director of Habits for Madagascar, the governmental body responsible for overseeing imports and exports. “It gives us time to get into negotiations.”
The country’s Commerce Minister, David Lalambofilinga, told journalists that Agoa is still applying “present for the time being.”
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However, experts warn that the 90-day suspension may be insufficient for countries that rely heavily on AGOA.
“Textile exports have been significantly damaged, and the 25% tariff on automobile exports is extremely problematic for South Africa,” warned Alex Vines, director of the Africa program at Chatham House, international affairs think tank.
“Mauritius, Madagascar, Lesotho and South Africa will be particularly affected.”
The stakes have been particularly high at Lesotho, which has long been seen as the textile industry as Agoa’s success story.
The industry accounts for around 10% of the country’s gross national revenue, and if the transaction is abolished, up to 40,000 jobs will be on track, the country’s Letty III said last month.
Behind the scenes, the African government is currently working to secure new trade deals with the US, while also looking for new markets for export.
