African Continent: Trump targets nations with new tariffs.

From August 1st, several African countries will be hit by new US tariffs, as part of President Donald Trump’s aggressive trade policy. Four countries on the continent are formally targeted: South Africa, Algeria, Libya and Tunisia.

Tariffs will reach 30% for South Africa, Algeria and Libya, and 25% for Tunisia. These measures concern key exports such as oil, precious metals, clothing and agri-food products.For Pretoria, these taxes call into question a hitherto relatively balanced trade relationship. South Africa points out that 77% of American products enter its territory duty-free, compared with 56% of South African goods which are exempt in the United States.

On the Tunisian side, this tariff increase could weaken already exposed export sectors, such as textiles and agri-foodstuffs. Algeria and Libya, whose sales to the U.S. are based almost exclusively on oil, see their potential revenues directly impacted.

If no bilateral renegotiations are concluded by August, Africa-US trade could enter a phase of unprecedented tension, with repercussions for local investment and employment.

source: Agence Ecofin