Africa Cocoa, Textile Sectors Face Tariff Pressure in Trump Trade War

Timothy Kisambira/The New Times
Workers at a garment factory (file photo).
15 April 2025
Daba Finance (Abidjan)

 

  • African exporters are bracing for impact as the U.S. trade war, led by President Donald Trump, targets key sectors with new tariffs
  • Lesotho, Madagascar, and Mauritius face some of the highest proposed duties--50%, 47%, and 40% respectively
  • The White House says duties will be adjusted based on trade imbalances. South Africa, with a $7.1 billion surplus, faces a 30% tariff on vehicle exports

African exporters are bracing for impact as the U.S. trade war, led by President Donald Trump, targets key sectors with new tariffs. Cocoa, textiles, and vanilla are among the most exposed commodities. Lesotho, Madagascar, and Mauritius face some of the highest proposed duties--50%, 47%, and 40% respectively--despite accounting for a small share of U.S. imports.

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Africa now has 90 days to negotiate individual trade terms before 10% universal tariffs become permanent. The White House says duties will be adjusted based on trade imbalances. South Africa, with a $7.1 billion surplus, faces a 30% tariff on vehicle exports.

Lesotho's textile sector, a major supplier under AGOA and contributor to 11% of GDP, could suffer severe losses. Madagascar, reliant on textiles and vanilla, risks a 2% GDP hit. Ivory Coast, the world's top cocoa producer, may also see earnings fall. Strategic resources like oil and gold remain exempt.

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Key Takeaways

Donald Trump's tariff strategy risks undermining African economies reliant on U.S. market access through AGOA. Countries like Lesotho and Madagascar--where textile exports to the U.S. are significant contributors to GDP--face steep economic losses if tariffs are imposed. Ivory Coast's billion-dollar cocoa industry, already under pressure from price volatility, could see reduced margins. While raw materials like oil and minerals are exempt, high-value processed exports such as garments and food products are in the crosshairs. With only 6% of Africa's exports going to the U.S., overall continental exposure is limited, but smaller economies heavily dependent on AGOA benefits face acute risks. The next 90 days will be critical as governments scramble to negotiate exemptions or reduced tariff rates. Failure to secure favorable terms could push African exporters to diversify into alternative markets in Europe, Asia, and within AfCFTA, or face the economic fallout of lost U.S. demand.

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