US President, Donald Trump, has announced plans to slap a 10% tax on all imports from smaller countries around the world, including countries in Africa and the Caribbean.
The 10% tax is seen as marking a sharp shift in US trade policy, aimed at what Trump describes as “reciprocal” treatment.
The announcement comes as a number of African nations prepare for sharp increases in taxes. Lesotho, a small Southern African nation, could face tariffs as high as 50 percent on goods exported to the United States. While the tariffs are currently on hold during a three-month consultation period, concerns are rising over the long-term economic fallout.
“These are countries. Many of them, you know, like 200 countries,” Trump says in response to questions about which nations would be affected. “We’ll probably set one tariff for all of them.”
US Commerce Secretary Howard Lutnick supported the move, saying the President plans to handle small nations in the way he believes is most effective. “The Caribbean countries, African countries. There are a lot of them,” Lutnick said.
The World Trade Organization is urging the United States to reconsider. WTO Director-General Ngozi Okonjo-Iweala has called for African countries to be exempt from the proposed tariffs, warning that such actions could severely damage developing economies and undo years of progress.
As the consultation period unfolds, both affected countries and international trade bodies are calling for dialogue. They hope to avoid a new wave of economic instability, especially for vulnerable economies dependent on exports.
Source: Africa Publicity
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