US President Donald Trump’s “Liberation Day” tariff plan, set to begin today (April 2), has raised concerns for countries, including Kenya, that export to the United States.
According to a Bloomberg report, Trump confirmed that the tariffs would apply to all countries, dispelling rumors that only a few would be targeted. He emphasized that the new tariffs would be a way to rebalance global trade by equalizing the tariffs other countries impose on the US.
“You’d start with all countries. Essentially all of the countries that we’re talking about. So let’s see what happens.” Trump said. “I haven’t heard a rumor about 15 countries, 10 or 15.”
It’s not clear if these tariffs would target Kenya as well.
The move could significantly impact Kenya’s exports to the US, valued at Sh98 billion ($758.9 million) in 2024 according to Trading Economics.
Kenya’s major exports to the US include agricultural products such as tea, coffee, horticultural goods (including flowers), and textiles. These industries form the backbone of Kenya’s trade relationship with the US, and any rise in tariffs could make Kenyan products more expensive, potentially reducing their competitiveness in the US market.
Trump’s administration has already imposed tariffs on imports of aluminum, steel, and automobiles, and this new round could target a wider range of goods.
If Kenya’s agricultural exports are slapped with Trump’s tariffs, they may face higher costs, making them less attractive to US buyers because exporters are likely to pass down the cost to consumers. This would be a blow to the country’s growing export sector, which benefits from the African Growth and Opportunity Act (AGOA) that allows duty-free access to US markets for many African products.
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Kenya’s economy could also be affected by potential retaliatory tariffs from other countries, especially if Trump’s tariffs lead to global trade tensions. Such a situation could harm not just exports but broader economic relationships.
According to Trump, the new tariffs aim at boosting US manufacturing and generating revenue for domestic policy goals, however the ripple effect of his tariffs could be a significant shockwave for Kenya and other African countries.
