US Threatens New Tariffs on Key African Exports

The United States is considering imposing new tariffs of up to 12.5 percentage points on imports from seven African nations: Algeria, Angola, Egypt, Libya, Morocco, Nigeria, and South Africa.

This action, authorized under Section 301 of the Trade Act, would target countries deemed to have failed to meet labor standards—specifically, prohibiting and enforcing against forced labor practices. The US Trade Representative (USTR) initiated investigations into 60 countries earlier this year, finding that many lacked adequate legal frameworks to address forced labor in their supply chains.

The proposed tariffs would hit particularly hard at Egypt, Morocco, and South Africa, which have the most significant trade relationships with the US among these nations. For example:

• Egypt could see its effective tariff rate increase from 11.9% to 13.8%, impacting $2.6 billion in annual exports.
• Morocco would experience a rise from 9.9% to 11.4% on $1.8 billion in exports.
• South Africa, with its largest US export base of $14.6 billion, would face a smaller increase but still significant impact on sectors like precious metals and jewelry (57% of its exports).

The consumer goods, textile, and apparel industries are expected to bear the brunt of these new tariffs.

Legal Challenges and Future Outlook

This marks the latest chapter in an evolving legal battle over US trade policy. Previous attempts at broad tariff impositions faced challenges in both federal courts and the Supreme Court, which limited presidential authority to impose tariffs without congressional approval. While this Section 301 approach may offer a more durable legal foundation, it remains subject to judicial review.

The timing is notable as existing temporary tariffs are set to expire on July 24 unless Congress extends them.