"Africa Growth and Opportunity Act" between Africa and the US under threat

China has announced that it will remove the tariffs it charges on imports from all 53 African countries with which it has formal ties. The decision was made at a China-Africa co-operation meeting.

When it goes into effect, the move to zero tariffs will be an extension of China’s deal last year to drop taxes on goods from 33 “least developed” African countries. However, China hasn’t said when the decision will come into effect.

China affirms its position in Africa 

China has been Africa’s biggest trade partner for 15 years running. In 2023, the value of Chinese exports to Africa reached $173 billion, while imports from Africa totaled $109 billion, resulting in a $64 billion trade deficit for Africa, according to official data.

Per the new tariff plan, some of China’s biggest trade partners on the continent, like South Africa and Nigeria, will be on the new list. However, Eswatini has been excluded from the zero-tariff announcement because it recognizes Taiwan as an independent country, whereas China regards it as a breakaway province.

In the meeting, China pulled a string against the US, saying that the US should resolve trade disputes based on “equality, respect, and mutual benefit.” In response, a joint ministerial statement criticized “certain countries’ [efforts to] disrupt the existing international economic and trade order” by putting tariffs on goods without consulting anyone else.

Africa Growth and Opportunity Act between Africa and the US under threat

President Donald Trump upset US trade partners in April when he announced high tariffs on imports from many countries. For example, Lesotho rates increased to  50%, South Africa 30%, and Nigeria 14%.

The implementation has been put on hold until next month. However, US Treasury Secretary Scott Bessent says that the temporary stop could be extended even longer for countries that are talking “in good faith.”

The US bought goods from Africa worth $39.5bn in 2024. Some of that was brought in through the Africa Growth and Opportunity Act (Agoa), which has no tariffs. This deal could be under threat if the Trump administration goes ahead with its plans to add new charges.

China says it will keep its word

The biggest trade war has been between the US and China. However, this week, things are beginning to look up. The phone call between Trump and Xi ended a standoff that had started just a few weeks after a basic deal was made in Geneva.

Talks in London soon after the call put “meat on the bones” of the Geneva deal to lower retaliatory tariffs between the two countries. China’s continued restrictions on resource exports caused the Geneva deal to fall apart. 

In response, the Trump administration limits exports of semiconductor design software, jet engines for planes made in China, and other goods to China. Trump said Wednesday that he was pleased with the trade deal. “Our deal with China is done, subject to final approval with President Xi and me,” Trump said on Truth Social.

Now, China has affirmed a trade deal announced by Trump. The second biggest economy has gone further to say that they will keep their word.

“China has always kept its word and delivered results,” Lin Jian, a foreign ministry spokesperson, said at a regular news conference. “Now that a consensus has been reached, both sides should abide by it.”

Trump and other US officials indicated the deal should resolve issues between the two countries on rare earths and magnets. However,  reports later indicated China would only loosen restrictions on rare earth mineral exports for six months.

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