Overview

• The Trump administration announced a 90-day suspension of steep tariffs on Lesotho, Madagascar, and South Africa, offering temporary relief but maintaining a baseline 10% tariff on imports.
• Uncertainty looms over the future of the African Growth and Opportunity Act (AGOA), which is up for review in September, with fears that its potential termination could devastate key industries.
• Lesotho’s textile sector, employing nearly 30,000 workers, faces significant job losses due to competitive disadvantages from higher tariffs compared to regional counterparts.
• Madagascar’s vanilla exporters, responsible for 80% of global production, are rushing shipments to the U.S. to avoid potential tariff hikes following the suspension period.
• South Africa’s citrus and automobile industries remain vulnerable, with tens of thousands of jobs at risk if AGOA benefits are not renewed or tariffs increase after the suspension.