The future of the African Growth and Opportunity Act (AGOA), a key trade pact between the U.S. and African nations, hangs in the balance following U.S. President Donald Trump’s recent imposition of a 10% reciprocal tariff on imports. Economist Churchill Ogutu has warned that these tariffs could derail efforts to extend AGOA, which is set to expire in September.
In an interview with Citizen TV, Ogutu noted that the introduction of reciprocal tariffs undermines the spirit of trade concessions that AGOA is built on. “The duty-free agreement stands a slim chance of being renewed,” Ogutu said, urging African countries to diversify their trade relationships and lean more on the African Continental Free Trade Area (AfCFTA).
“Engagements with European and Asian partners should be intensified,” he added, emphasizing that a shift in focus could help mitigate the impact if AGOA is not renewed.
Although Trump has since paused the tariffs for all countries except China, the damage may already be done. Kenya, one of the biggest African beneficiaries of AGOA, has been particularly affected. In 2024 alone, Kenya exported goods worth $737.3 million (Ksh.95.3 billion) to the U.S., primarily in the form of apparel, coffee, and tea.
Trade Cabinet Secretary Lee Kinyanjui acknowledged the challenge posed by the new tariffs and revealed that Kenya is actively seeking to resolve the issue. Speaking on Monday Report, Kinyanjui said, “Kenya will be appealing this 10 percent trade tariff, and we have drafted the rationale for that.”
He added that a Kenyan delegation had traveled to Washington to negotiate a solution and explore a bilateral free-trade agreement with the U.S., independent of AGOA.
With the September deadline looming, experts believe that time is running out for a resolution. Ogutu warned that while AGOA has been beneficial, African nations must prepare for a future beyond the agreement.
“The kind of engagement that was primarily between Africa and the U.S. through AGOA may not continue,” he said. “It’s time to rethink Africa’s global trade strategy.”
