Starting August 7, a fresh wave of U.S. tariffs rattled African exports, hitting key industries from Lesotho’s textiles to South Africa’s auto sector. 😬 While factories and plants brace for impact, China’s new zero-tariff policy is stepping up as a powerful alternative for African businesses.
African industries under pressure
The U.S. tariff campaign, led by President Donald Trump, has raised duties up to 50% (later revised to 15%) on goods from South Africa, Lesotho, Libya, and Tunisia. Lesotho’s textile sector, once booming under AGOA, now faces risky headwinds.
"This has impacted us a lot, especially because textile manufacturing for the U.S. market has been the backbone of Lesotho's economy," says Teboho Kobeli, Managing Director of Afri Expo Textiles. 🧵 "It became a shock. We had to team up with government, manufacturers, employees, and trade unions to look for other markets."
A turning point in trade relations
China, already Africa's top trading partner, announced it will remove all import tariffs for African countries with diplomatic ties. Victor Gao, Vice President of the Center for China and Globalization, calls the U.S. measures "an unjustified war against free trade." He adds, "China will fight till the very end… Free trade is something worthwhile for all countries to defend." 🤝
By opening its doors with zero tariffs, China offers African exporters a fresh route to reach markets through platforms like the China International Import Expo.
Finding new growth
In Lesotho, Kobeli has pivoted to South African retailers such as Pick n Pay and Woolworths to keep business alive. In South Africa, an export support desk aims to help automakers diversify away from U.S. demand. "Every country impacted by this schizophrenic politicking is looking for alternative markets, and that's going to be China," notes Thembisa Fakude, Senior Research Fellow at Africa Asia Dialogues. 🚗
Looking ahead
As both sides deepen ties, opportunities in green development, digital trade, and industrial innovation are on the horizon. "The lines of communication… are already up and running," says Fakude. "Now it's a matter of diverting whatever we were doing with the U.S. into China… you can't continue trusting the United States." 🌍🔄
Reference(s):
China and Africa eye deeper trade ties as U.S. tariffs hit Africa
cgtn.com