How East Africa intends to respond to Trump tariffs

State Department for Trade Principal Secretary Regina Ombam/HANDOUT

The East African Community (EAC) will look inward for trade opportunities as the impact of a 10 per cent reciprocal tariff imposed by the U.S. threatens the region's export competitiveness.

Regina Ombam, Principal Secretary in Kenya’s State Department for Trade, told MPs the shift in trade strategy could spur stronger intra-EAC commerce, especially in sectors such as agriculture, textiles, and light manufacturing.

"Countries like Kenya and Rwanda, with more developed logistics and processing sectors, may become hubs for regional value chains," Ombam told the National Assembly Committee on Regional Integration during a briefing on the implications of the U.S. tariffs.

The tariffs—part of a broader “reciprocal” trade policy enacted via Executive Order by US President Donald Trump on April 2, 2025—target all trading partners, including EAC member states, with a blanket 10 per cent duty on US imports.

Although the policy was suspended for 90 days beginning April 10, the looming July 9 enforcement date has already disrupted markets.

However, Kenya is expected to initiate consultations with EAC member states and potentially engage the African Union and international trade blocs to urged the US to grant the region exemptions or policy reviews under existing trade agreements.

Ombam highlighted that the changing trade landscape is already driving East African businesses to localise production and restructure supply chains.

“EAC businesses are starting to source raw materials and intermediate goods from neighbouring countries rather than overseas,” she noted.

Nonetheless, she cautioned that Kenya’s relatively stronger economy could overshadow smaller EAC members like Burundi and South Sudan, creating trade imbalances or diplomatic friction.

“While the long-term shift toward regional trade integration may have positive outcomes, the short-term disruptions are painful,” she said.

“Many export-oriented sectors, particularly horticulture and textiles, are experiencing losses and operational adjustments.”

The textiles and apparel industry has been hit particularly hard, with over 50,000 jobs in Kenya at risk due to diminished competitiveness in the U.S. market.