The Trump administration’s latest tariff regime, unveiled this month, has imposed sweeping levies on imports from African nations, ranging from 10% to 50%. The move, framed as a bid to enforce “trade reciprocity,” has sparked concerns about its impact on the nascent African tech sector — and whether the tariffs will inadvertently stifle an industry that is not, in most cases, the primary export driver for the continent.
The new tariffs, set to be implemented in two phases (April 5 and April 9), are calculated based on each country’s trade balance with the U.S. Lesotho faces the highest levy at 50%, while Morocco, Kenya, and Egypt are among those hit with a 10% duty. Commerce Secretary Howard Lutnick defended the measures, arguing that leaving any country off the list would create loopholes for arbitrage — a lesson learned, he said, from China’s evasion of Trump’s 2018 tariffs by rerouting goods through third countries.
The administration’s rationale hinges on correcting perceived imbalances: the U.S. runs a trade deficit with several African nations, particularly in raw materials like oil (Nigeria, Angola) and minerals (South Africa’s platinum, Morocco’s phosphates). But critics argue the tariffs misalign with economic realities. Africa’s exports to the U.S. are dominated by commodities, not tech. In 2023, less than 1% of Africa’s total exports to the U.S. were tech-related, with Morocco leading at $222 million in semiconductor devices — a fraction of Taiwan’s $214 billion in integrated circuit exports or the UK’s $92 billion in financial services.
The Tech Sector’s Limited Exposure — For Now
Africa’s tech exports are concentrated in a handful of countries:
- Morocco: The continent’s top tech exporter, shipping semiconductors and automotive components (e.g., STMicroelectronics’ Casablanca plant).
- South Africa: Exports vehicles and aerospace parts but remains reliant on platinum and precious metals.
- Egypt and Kenya: Export minimal tech; Kenya’s top U.S. exports are vaccines and coffee, Egypt’s are textiles and iron bars.
The tariffs’ immediate impact on tech will likely be muted. Morocco’s semiconductor industry, for instance, may absorb the 10% duty due to its integration with European supply chains. However, the broader risk lies in stifling future growth. Africa’s tech sector is still in its infancy. Tariffs on unrelated sectors could reduce foreign exchange earnings needed to invest in tech infrastructure.
Some analysts also suggest the tariffs could incentivize Chinese firms to relocate production to low-tariff African nations (e.g., Morocco’s 10% rate vs. China’s 34%). But this hinges on strict rules of origin. The U.S. requires “substantial transformation” (e.g., local manufacturing, not just assembly) to avoid transshipment crackdowns.
Morocco’s Tanger Med industrial zone, with its automotive and aerospace clusters, is a potential beneficiary. Yet challenges persist:
- Labor and logistics: Africa’s tech manufacturing capacity lags behind Asia’s.
- AGOA limitations: The African Growth and Opportunity Act offers duty-free access for eligible goods, but tech products often fail to meet value-addition thresholds.
The Bottom Line
Trump’s tariffs are a blunt instrument for a nuanced trade landscape. While the African tech sector isn’t the primary target, the levies could drain capital from economies that might otherwise invest in digital transformation. For now, the continent’s tech ambitions remain constrained by its reliance on commodities — a reality these tariffs do little to change.