The South African and Kenyan governments on Thursday, April 3, responded to U.S. President Donald Trump's imposition of tariffs on countries that apply Value Added Tax (VAT) on imported U.S. products.
In his declaration, Trump imposed a 10 percent tax on Kenyan exports in response to Kenya’s 16 percent VAT on U.S. goods and a 30 percent tariff on South African exports due to their 60 percent VAT.
Responding to the matter on X, Kenya’s Foreign Affairs Principal Secretary, Korir Sing’oei, downplayed the impact of the new tariffs, noting that Kenya still faced one of the lowest rates and was grouped alongside the UK, Egypt, Morocco, Uganda, Tanzania, and Ethiopia.
In a subsequent post, Sing’oei stated that Kenya would advocate for a waiver but noted that the tariffs would not take effect immediately. He emphasized that the African Growth and Opportunity Act (AGOA) allows African countries to continue exporting tariff-free until the agreement expires in September.
"While the tariffs may be among the lowest, we shall vigorously advocate for their waiver," Sing'oei stated.
"Additionally, since AGOA is a Congressional framework for market access to the U.S. by African exporters, our considered view is that until the law lapses at the end of September 2025, or unless repealed earlier by Congress, the new tariffs imposed by President Trump will not be immediately applicable."
However, he acknowledged the need for a long-term solution, ideally rooted in intra-African trade.
In South Africa, a communiqué from the President's office recognized the new tariffs and expressed willingness to negotiate with the U.S. to eliminate the "punitive" measures while maintaining trade relations.
"While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity," part of the statement read.
"The tariffs affirm the urgency of negotiating a new bilateral and mutually beneficial trade agreement with the U.S. as an essential step toward securing long-term trade certainty."
In Kenya, key sectors previously exempt from tariffs under AGOA—such as textiles, tea, and coffee—will now face new trade conditions unless Kenya reaches a mutual agreement with the new U.S. administration by September.
This move is in line with President Trump's fulfilling his campaign promises of protecting the United States' interests in trade with the countries affected by putting "America first."
