
- US impose 10% tax on Kenyan Exports;
The U.S. government has imposed a 10% tax on Kenyan exports, a move that is fueling up trade tensions between the two countries, all because of Kenya’s 16% value-added tax (VAT) on American goods.
This tariff, which was rolled out by the Trump administration, is set to hit some of Kenya’s key exports hard, including agricultural products, textiles, and other items that make their way into the U.S. market.
This decision comes as Washington takes a stand against what it sees as unfair trade barriers from Nairobi.
According to a statement from the White House, this tax will stick around unless Kenya comes to the table to negotiate changes to its VAT policy.
“The United States will not sit idly by while American businesses face unfair taxation overseas.
If Kenya wants to keep enjoying preferential access to our market, it needs to rethink its 16% VAT on U.S. products,” read part of the statement.
The U.S. is a major trading partner for Kenya, and these increased tariffs could really hurt exporters who depend on the American market.
Other African countries affected also include South Africa with 30% reciprocal Tariffs imposed.
US president Trump says that, “A lot of bad things are happening in South Africa.”.
Other African countries which will be affected, with Lesotho, Madagascar, Mauritius, Botswana, Angola, Libya, and South Africa bearing the brunt, while Egypt, Morocco, Kenya, Ethiopia, and Ghana will face relatively lesser impact.
In South Africa, a statement from the President’s office acknowledged the new tariffs and expressed a willingness to engage in negotiations with the U.S. to remove the “punitive” measures while preserving trade relations.
While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity