Kenya’s trade with the US was dealt a blow recently after President Trump signed a new executive order imposing reciprocal tariffs on trade with Kenya.
Under the new tariffs, Kenya’s Ksh109.7 billion trade with the US is set to suffer a blow after a 10 percent baseline tariff on all of Kenya’s exports.
The tariff will 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).
President Trump imposes a 10% tariff on Kenyan exports as AGOA nears expiry. Photo: Courtesy.
This new move could lead to reduced exports, job losses, and lower revenues for businesses relying on the American market.
According to Trump, the purpose of imposing the tariffs was mainly to protect America’s interests in trade with the countries affected.
He argued that when goods from the US are sent to countries with VAT, they become more expensive due to the tax, making them less competitive in the market.
In contrast, exports from those countries to the US often face fewer restrictions or taxes.
Vaccines, blood, antisera, toxins, and cultures, which are part of pharmaceutical products that Kenya exports to the US, are also set to be affected by the new tariffs signed by Trump.
The new order comes a few weeks after Trump directed his government to impose fresh tariffs on countries that charge Value Added Tax (VAT) on US products.
