U.S. tariffs drive more economic trade amongst African Nations; China seizes the opportunity

Upon his second inauguration, the United States (U.S.) President Donald Trump announced sweeping tariffs that disrupted global trade.

The sweeping tariffs also impacted trade between African economies and the U.S. African exports to the U.S. stood at $71.6 billion in 2024, while imports stood at $39.5 billion in the same year.

AGOA

The African Growth and Opportunity Act (AGOA) is a U.S. trade program that provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products. In the early part of the year, President Trump said he would review the AGOA program, which is set to expire in September.

Africa trade protectionism

At its 34th meeting in Harare, the Southern African Development Community (SADC) warned that relying on traditional external trade partners had become risky. Members called for a shift in trade priorities, stable markets, and inclusive regional growth—spurred by recent U.S. trade reforms that could raise tariffs on exports from countries like South Africa.

Economic analysts note a rapid shift in Africa's trade landscape, with blocs like ECOWAS and the EAC also strengthening regional integration and political ties.

An image showing a boat docked at the DP World port in Sokhna, Egypt, on Wednesday, June 18, 2025. Credit: DP World

China's Alternative for Africa

Meanwhile, China has continued making inroads into African economies. China recently pledged a zero tariff for all except Eswatini, with which it does not have diplomatic ties. This move is expected to increase the export of goods. China's zero-tariff access applies to nearly all goods, while AGOA is facing an uncertain future.

Africa, like China, is beginning to realize its power and economic advantage given its diverse agriculture, mining and tourism sectors.

The continent can achieve financial freedom by promoting intra-African trade and removing trade barriers.

Africa will improve trade deficits by collaborating with external countries and regions like China and the broader global markets.