Interview
June 3, 2025
Navigating protectionism: U.S. tariffs & East Africa’s trade future
The recent decision by the United States to double tariffs on steel and aluminum imports, raising them from 25 percent to 50 percent, has triggered global concern. This move is disrupting commodity markets and prompting a reassessment of trade and investment strategies around the world. While much of the focus has been on how this affects major exporters like China, the implications for East Africa are significant and deserve close attention.
In an interview with CNBC Africa’s Tabitha Muthoni, Bernard Laurendeau, Founder of Enkopa Lab, offered insights into how East African economies might respond to this shifting global environment and how they can turn challenges into opportunities.
Global Trade is Changing. What Does This Mean for East Africa?
At first, U.S. tariff hikes may seem unrelated to Africa’s immediate concerns. However, Laurendeau pointed out that the changes could open new doors for East African nations. As manufacturers and investors look for alternative regions with lower trade barriers, East Africa could become a more attractive option for trade and investment.
The region is already pushing for industrialization and infrastructure development. If it positions itself strategically, it could benefit from companies seeking to relocate or diversify production away from high-tariff environments. This would not only boost manufacturing capacity but also create jobs and enhance regional competitiveness.
Laurendeau emphasized that the opportunity must be approached with a long-term vision. It is not just about attracting short-term investment but about laying the foundation for sustainable industrial growth.
A Chance to Strengthen U.S.-Africa Economic Ties
The current situation also presents an opportunity for East African countries to deepen their bilateral relationships with the United States. By proactively engaging in discussions on trade and development, these nations can advocate for deals that align with their economic goals.
Recent diplomatic signals from the U.S., including increased attention to the Horn of Africa, show that the region holds growing strategic importance. This is the right moment for East African governments to push for new trade terms, access to development finance, and support for infrastructure initiatives.
Staying Out of the Crossfire
Despite the potential benefits, Laurendeau warned against passivity. East Africa must not allow itself to become a pawn in broader geopolitical rivalries, especially in the ongoing U.S.-China trade tensions. Instead, the region should set clear priorities and guard its economic interests.
This means ensuring that trade agreements focus on value addition, knowledge transfer, and long-term development rather than simply providing low-cost labor or raw materials. Sustainable growth must remain the central objective.
Seizing the Moment
The U.S. shift toward more protectionist trade policies signals the arrival of a new global trade era. For East Africa, the challenge is to move beyond reaction and embrace a proactive strategy.
According to Laurendeau, the region has the tools to succeed if it takes a clear and coordinated approach. Strong governance, regional collaboration, and a focus on quality investment can help East African countries turn global disruption into local opportunity.
Link to the full interview - LINK