US-China Trade War May Open New Markets for African Exporters
TLDR
- A US-China trade war could create export opportunities for Africa, as tariffs force the world’s top economies to source goods elsewhere
- US President Donald Trump is set to impose 25% tariffs on Canada and Mexico, with 10% duties on China expected
- However, tariff threats have strengthened the dollar, weakening the rand and other emerging-market currencies
A US-China trade war could create export opportunities for Africa, as tariffs force the world’s top economies to source goods elsewhere, said Iain Williamson, CEO of Old Mutual Ltd. “There could be opportunities if we can substitute some Chinese imports into America, particularly in raw materials and agriculture,” Williamson told Bloomberg.
US President Donald Trump is set to impose 25% tariffs on Canada and Mexico, with 10% duties on China expected. This could shift global trade flows, benefiting African suppliers. However, tariff threats have strengthened the dollar, weakening the rand and other emerging-market currencies, which could slow African economic growth if central banks keep interest rates elevated.
Trump has also questioned US aid to Africa, raising concerns about the region’s financial reliance on foreign assistance. Williamson emphasized the need for Africa to reduce aid dependence and seize trade opportunities.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
A US-China trade war may redirect global supply chains, creating new export markets for Africa, particularly in commodities and agriculture. While weaker currencies and trade uncertainty pose risks, African nations can strategically position themselves as alternative suppliers. With US aid under scrutiny, Africa’s economic resilience may hinge on boosting self-reliance and capitalizing on global trade shifts.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.