๐บ๐ธ President Trump to impose 25% tariff on Japan and South Korea.
US announces 30% tariff on South Africa and 25% tariff on Malaysia and Kazakhstan.
The US has announced new tariffs on several countries, including:
South Africa: 30% tariff on exports to the US, sparking concern from the Presidency, which noted the potential impact on trade relations.
Malaysia and Kazakhstan: 25% tariff, as part of the US's broader trade policy shifts.
Japan and South Korea: Reports suggest President Trump plans to impose a 25% tariff, although details are still emerging.
These tariffs could have significant implications for global trade:
Disrupted Supply Chains: African economies, particularly those in manufacturing and processing, may face reduced demand for raw materials and inputs.
Commodity Price Volatility: Tariffs can lead to unpredictable price swings, affecting countries reliant on commodity exports.
Investment Uncertainty: Trade tensions can undermine investor confidence, potentially slowing foreign direct investment in affected regions.
In response, countries may consider strategies like:
Deepening Regional Trade Partnerships: Strengthening regional ties, such as through the African Continental Free Trade Area (AfCFTA), to reduce dependence on external markets.
Diversifying Exports: Investing in manufacturing, agro-processing, and technology-enabled services to reduce vulnerability to traditional export dependence.
South-South Cooperation: Enhancing trade and investment collaboration with emerging economies to reduce exposure to Western-led economic disruptions.