The United States has imposed a 10% tariff on Ethiopian exports as part of President Donald Trump’s latest global trade policies, a move that could have implications for Ethiopia’s export sector.

In a statement from the White House on Wednesday, President Trump justified the sweeping tariff increases—ranging from 10% to 50% on various trading partners—as a strategy to prioritize American economic interests and reduce the country’s trade deficit. Ethiopia was among the nations affected, with exports to the U.S. now facing added costs.

“The United States must protect its economy from unfair trade practices. If other nations impose high tariffs on us, we will respond accordingly,” Trump declared.

He has long advocated for reshaping international trade agreements, claiming that high tariffs imposed by other countries have unfairly subsidised their economies at the expense of the US.

Ethiopia has exported products such as textiles, coffee, and agricultural goods to the U.S. under various trade agreements. The new tariffs could affect the competitiveness of these exports in the American market amid Ethiopia’s suspension from AGOA.

Ethiopia previously benefited from the African Growth and Opportunity Act (AGOA), which provided duty-free access for many products. However, recent policy shifts have changed the trade dynamics between the two nations. With the added tariff, Ethiopian exporters may face increased costs that could impact trade volumes.

The tariff changes come at a time when Ethiopia is seeking to boost exports and attract investment. It remains to be seen how local businesses and policymakers will respond to these trade adjustments.

“Countries such as Kenya, Ghana and Ethiopia with the lowest tariffs of 10% are potential African Winners,” Zemedeneh Negatu, CEO of CBE Capital shared on his social media. “They have a unique opportunity to expand their exports to the U.S. at low tariffs which could make their products more price competitive.”

The new tariffs have prompted reactions from various global stakeholders. The European Union, Japan, and South Korea have raised concerns over the potential impact on global trade and economic stability. Some analysts warn that these measures could lead to inflation in the U.S. and disruptions in supply chains.

“Globalization has entered a new uncharted era and African countries need to prepare,” Zemedeneh Warned

For Ethiopia, the decision adds a new factor to the evolving trade landscape. Businesses may need to evaluate alternative markets or strategies to mitigate potential economic effects.

However, Zemedeneh said that Ethiopia, which has invested hundreds of millions in labor intensive industries for exports such as garments, and competes globally with garment industry heavyweights such as Vietnam and Bangladesh, could price outcompete these two countries which are facing increased U.S. tariffs of 46% and 37% respectively.

The tariff varies across countries. China faces a 34% tariff, while the European Union is subject to 20%. Vietnam is hit with 46%, Taiwan with 32%, and Japan with 24%. India, South Korea, and Thailand face tariffs of 26%, 25%, and 36%, respectively. Switzerland and Indonesia both receive a 32% tariff, while Malaysia is at 24%. Cambodia faces the highest rate at 49%, while the United Kingdom, Brazil, Singapore, Chile, Australia, Turkey, and several other nations, including Ethiopia, are subject to a 10% tariff. Bangladesh is taxed at 37%, while Sri Lanka and Myanmar (Burma) face 44%. Madagascar sees a 47% tariff, Laos 48%, and Lesotho the highest at 50%. Other notable rates include Nigeria at 14%, Côte d’Ivoire at 21%, and Namibia at 21%. Several Middle Eastern and African nations, including Saudi Arabia, Egypt, and Kenya, face a 10% tariff. These tariff adjustments reflect the broader changes in U.S. trade policy under President Trump’s administration.