Trump’s trade policy throws African trade into fresh uncertainty-PAMA

The recent America trade policy following an executive order issued from the White House on July 31, 2025, has thrown African trade into fresh uncertainty, according to Pan African Manufacturers Association, (PAMA) news bulletin, July 2025 edition.

It noted that as part of a sweeping recalibration of U.S. trade policy, dozens of countries, including Nigeria, South Africa, Ghana, Namibia, and Mozambique, have been slapped with new tariff rates ranging from 10% to 30%.

However, Algeria, Libya and South Africa face the highest tariffs on their exports to the United States, according to the full list released by the Trump administration.

It highlighted that despite running a trade deficit with the United States, several African countries were not spared as the Trump administration’s logic appears to centre on punitive reciprocity: countries that did not renegotiate terms to U.S. satisfaction were assigned flat or elevated tariffs.

“While some nations were offered temporary reprieve or reduced rates due to bilateral negotiations (like Malaysia and Thailand), African economies received little such accommodation. Instead, the tariffs were enforced without corresponding trade dialogue or exemption frameworks for vulnerable developing economies,” it added.

PAMA highlighted the America trade policy implications for African Manufacturers to include: “Cost pressures and supply chain disruption: Manufacturers across the continent that rely on the U.S. market for exports, particularly in textiles, agro-processing, chemicals, and light manufacturing, will now face immediate cost escalations. A 15 – 30% tariff will drastically erode competitiveness, especially when juxtaposed with cheaper goods from countries with lower or no tariffs.

“Threat to industrial growth and jobs: For emerging industrial hubs like Ethiopia, Kenya and Ghana, where export-led growth is a core strategy, this development risks slowing plant expansions, discouraging foreign investment, and stalling job creation in special economic zones. Even countries like Egypt and Kenya, which secured a lower tariff rate of 10%, will have to reassess their market exposure.

“Reorientation towards AfCFTA is no longer optional: The new tariffs should serve as a wake-up call. Africa can no longer afford to treat intra-continental trade as an afterthought. With AfCFTA’s operational phase gaining traction, now is the time for manufacturers to deepen regional value chains, invest in logistics connectivity, and scale exports within Africa itself.

“Export diversification will be key: Some African industries overly reliant on the U.S. market must begin exploring strategic trade alignments with the EU, China, ASEAN, and intra-African corridors. In the short term, firms may experience profit compression; in the long term, however, it could catalyse a shift toward more resilient and diversified markets.”

As the voice of African manufacturers, PAMA calls for: “Urgent continental coordination among trade and industry ministers to establish a unified African response to the U.S. tariffs.

“Preferential trade agreements with key non-Western markets to reduce overdependence on any single bloc.

“Export insurance and hedging mechanisms, especially for SMEs, to mitigate tariff-induced losses.

“Accelerated implementation of AfCFTA Protocols on Rules of Origin and Trade Remedies to buffer local industries.

“Pan-African industrial financing frameworks that reduce the need for vulnerable industries to depend solely on foreign markets.”

PAMA noted that it views the U.S. tariff decision not just as a policy challenge but as a litmus test for the maturity of Africa’s economic strategy.

It emphasized that this is a moment to rally around African manufacturing with greater urgency, deeper collaboration, and more assertive investment in homegrown production, noting that if Africa fails to act now, the continent will remain a passive recipient of external shocks.

“But if we seize this disruption as motivation, it may very well be the catalyst that galvanises Africa’s long-awaited industrial revolution,” it added.