Experts Say Trump’s Tariff Warning Will Likely Have Minimal Impact on Ethiopia

In January, Ethiopia officially joined the BRICS group of emerging economies, which includes Brazil, Russia, India, China, and South Africa. This development has sparked optimism, as it promises new opportunities for economic growth, stronger international partnerships, and a more prominent voice on the world stage.

BRICS was formed to foster cooperation among emerging economies and promote a balanced global economy. Its mission focuses on improving trade, sustainable development, and advocating for reforms in global institutions to better represent the interests of developing countries. Through regular summits, the group addresses issues like poverty, infrastructure, and global trade, aiming to create a more inclusive world order.

China’s rise has significantly changed the global landscape, driven by rapid economic growth and increasing influence in trade and diplomacy. Initiatives like the Belt and Road have expanded China’s reach, positioning it as a key force in shaping global affairs.

This rise has also been a source of tension for Donald Trump. His “Make America Great Again” slogan reflects his intention to counter China’s growing power. Trump emphasizes putting America first through renegotiated trade deals, tightened immigration policies, and a strengthened economy.

Recently, Trump issued a warning to BRICS members via X (formerly Twitter), stating, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any other Currency to replace the mighty U.S. Dollar, or they will face 100% Tariffs and should expect to say goodbye to selling into the wonderful U.S. Economy.” This statement has generated significant discussion, particularly among BRICS member countries.

As a new member of BRICS, Ethiopia is navigating its position amid these global tensions. Zemedeneh Nigatu, an international economist, noted that Ethiopia maintains relationships with both BRICS and Western institutions like the IMF and World Bank. He believes this dual alignment will benefit Ethiopia, especially since it has secured a USD 20 billion loan from the IMF and World Bank.

Zemedeneh pointed out that Trump’s primary focus is China, suggesting that Ethiopia’s strong relationship with the U.S. will mitigate potential negative impacts. He recommended that Ethiopia leverage think tanks to present its value proposition, emphasizing that the country can also benefit the U.S. despite its BRICS membership.

Looking ahead, he advised that Ethiopia should cultivate relationships with newly elected leaders and strategically position itself in the middle of these global dynamics.