The United States has intensified economic strain on Uganda by imposing a 10% tariff on all its exports to the U.S., effective April 5. This follows Uganda’s suspension from the African Growth and Opportunity Act (AGOA), a U.S. trade initiative that previously granted duty-free access to African goods. Washington justified the exclusion, citing humanitarian concerns.
The new levy, part of President Donald Trump’s broader strategy targeting “unfair trade practices,” has sparked fears of revenue losses and layoffs in Uganda’s fragile economy. Key sectors like coffee and textiles are particularly vulnerable. Coffee exporters worry the price hike could drive U.S. buyers to cheaper markets, while textile producers—still recovering from AGOA’s termination—face further decline. Analysts predict a sharp drop in Uganda’s export earnings, which totaled $240 million in bilateral trade with the U.S. in 2024.
The move has wider implications for Africa, signaling a stricter U.S. trade approach. South Africa and other AGOA beneficiaries are monitoring the shift, which may push the continent to seek alternative markets in Asia and the Gulf to mitigate economic fallout. Uganda’s government has announced plans for diplomatic negotiations with the U.S., but local industries are preparing for immediate challenges. The tariffs deepen existing vulnerabilities, threatening livelihoods and amplifying uncertainty in an economy already under stress.
