Kenyan exporters can breathe a sigh of relief after the United States spared them from the sweeping tariffs imposed on imports to the US from several countries across the continent and the world.
President Donald Trump's administration on Thursday, July 31, announced steep tariffs on imports from several trading partners as part of the broader strategy to reorganise the global economy.
Trump signed an executive order imposing additional tariffs that range from 10 to 41 per cent on several countries. The order lists a higher export duty on leading world economies such as Brazil, India, Japan, Israel, the United Kingdom and Switzerland.
While Kenya was spared in the latest round of tariffs, African countries that faced the heat include South Africa and Algeria, which were slapped with a 30 per cent tariff on their exports to the US.
Other African countries affected by a 15 per cent tariff increase include Ghana, Côte d'Ivoire, Equatorial Guinea, Chad, Cameroon, Botswana and Angola.
Madagascar, Malawi, Mozambique, Namibia, New Zealand, Nigeria, Zambia and Zimbabwe also faced a 15 per cent increase in duties. Of the East African countries, only Uganda was affected by the latest US executive order.
According to the executive order, goods from all other unlisted countries, including Kenya, will be subject to a 10 per cent US import tax.
When announcing the decision, the US government revealed that, despite negotiating with some trading partners, the countries in question had not offered terms that sufficiently addressed the trading imbalances.
"The Secretary of Commerce and the US Trade Representative shall recommend additional action, if necessary, should a foreign trading partner fail to take adequate steps to address the emergency declared in Executive Order 14257," read part of the executive order.
"This order shall be implemented consistent with applicable law and subject to the availability of appropriations," the executive order read further.
The latest executive order revises the reciprocal tariffs of the aforementioned countries and reveals the date on which the increased duties will take effect.
According to the White House document, the changes are expected to take effect seven days after the executive order is signed.
However, goods from the 70 countries affected by the latest executive order will be exempt from the new tariff if they are loaded onto ships before August 7.
