The government is set to appeal the imposition of a ten per cent trade tariff ordered by United States President Donald Trump.
Trade Cabinet Secretary Lee Kinyanjui on Monday, April 14, revealed the new development even as Kenya enjoys a 90-day pause on the tariffs on its exports to the foreign nation.
“The suspension (of the tariffs) gives countries a window to put their case forward. I want to confirm that Kenya will actually appeal this ten per cent tariff. We have already drafted the rationale and the reasons as to why,” Kinyanjui stated.
On Wednesday, April 2, President Trump signed a new executive order imposing reciprocal tariffs on trade with Kenya.
Under the new tariffs signed by Trump, Kenya's Ksh109.7 billion (784 million USD) trade with the US was set to suffer a blow after a ten per cent baseline tariff on all of Kenya's exports.
The tariff would affect Kenyan exports, particularly in key sectors such as textiles, tea, and coffee, which have been exempt from tariffs under the African Growth and Opportunity Act (AGOA).
Of particular concern would be the effect of the tariffs on the textiles industry, which is Kenya's biggest source of exports to the US.
However, Kinyanjui noted that Kenya was not one of the hardest-hit countries, particularly in regard to its textile exports.
“Our main competitors in textile exports to the US are Vietnam, Sri Lanka, and Bangladesh. These countries have been imposed tariffs of 46, 44 and 37 per cent respectively,” he stated.
“So Kenya with its ten per cent means that it would be cheaper for us as we would have greater market access,” Kinyanjui averred.
The tariffs could lead to reduced exports, job losses, and lower revenues for businesses relying on the American market.
Announcing the signing of the new tariffs, Trump maintained that the purpose of imposing the tariffs was mainly to protect America's interests in trade with the countries affected.
Trump, however took a U-turn on his own directives, ordering a 90-day pause citing consultations between the US and countries affected by the tariffs, such as Kenya. He also highlighted that these countries did not present any opposition to the tariffs.
