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• Tuko News
• Thu Apr 3 2025

US president Donald Trump unveiled a new trade policy reform on the so-called "Liberation Day" on Wednesday, April 2

The Republican leader argued that the trading relationship between the US and its trading partners had become highly unbalanced

International political economist Leshan Loonena Naisho told TUKO.co.ke that Kenya could face pressure to renegotiate trade terms under Trump's presidency

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Japhet Ruto, a journalist at TUKO.co.ke, brings over eight years of expertise in finance, business, and technology, offering in-depth analysis of economic trends in Kenya and worldwide.

United States (US) president Donald Trump has taken decisive action and imposed a retaliatory tax of 10% on Kenyan exports to the United States.

US president Donald Trump shows a list of countries he has imposed tariffs. Photo: Chip Somodevilla.

Source: Getty Images

Why Trump imposed tariffs on Kenya

Trump said that the broad tariffs were intended to combat what he called "cheating" in international trade and level the playing field.

On Wednesday, April 2, the 47th US president unveiled a new trade policy reform on the so-called "Liberation Day."

Trump argued that the trading relationship between the US and its trading partners had become highly unbalanced, particularly in recent years.

"There is a unique and exceptional threat to the US economy and national security due to underlying factors such as the lack of reciprocity in our bilateral trade relationships, different tariff rates and non-tariff barriers, and the economic policies of US trading partners that stifle domestic wages and consumption, as evidenced by the significant and ongoing annual US goods trade deficits," Trump stressed in a statement.

What Kenya should do

International political economist Leshan Loonena Naisho told TUKO.co.ke that Kenya could face pressure to renegotiate trade terms under Trump's presidency.

"The "America First" policy approach may result in calls for better conditions for American companies. The desire for bilateral trade agreements suggests a change in trade terms especially for agricultural and textile industries," Naisho explained.

The global economics expert noted Trump's administration creates significant uncertainty for the African Growth and Opportunity Act (AGOA)'s future beyond its September 2025 expiration.

"Trump's inclination for bilateral agreements over multilateral ones may compel Kenya to switch from AGOA benefits to a direct trade arrangement. Kenya may need to get ready to renegotiate its duty-free access to US markets as a significant AGOA beneficiary, which would have an impact on exports of textiles and agricultural products," he added.

Trump argued other countries had imposed taxes on its goods. Photo: Brendan Smialowski.

Source: Getty Images

How did Kenyans react?

Below are some reactions:

@lusiklayusi:

"The Kenya Kwanza regime imposed punitive tariffs on Imports leading to investors leaving the market. Trump has done the same. Basic economics. We should not complain or play the victim."

Amutsmama Jotham:

"This is going to be a scapegoat for everything negative on our economy even unrelated. "

@eliaskariz:

"The pressure is increasing."

@SONGOK50:

"There will be potential global trade war."

@wambuat12:

"We should demand our tea, coffee, titanium etc exports to the US won't be affected since every other supplier of such goods has also been tariffied."

@ArapTaharqa:

"Every country got slapped."

Darren Tovu:

"The toll man (Trump) thinks tariffs are the panacea to American government fiscal profligacies".

How the world reacted to Trump's tariffs

TUKO.co.ke earlier reported that a spokesman for the French government stated on Thursday, April 3, that the European Union was "ready for a trade war" with the US and intends to "attack online services" in reaction to Trump's proposed tariffs.

Workers, directors, trade groups, and economists in Asia expressed fear that Trump's scathing tariffs might harm important industries and jeopardise jobs.

China warned that the tariffs will destroy global supply chains and and vowed to take countermeasures.

Source: TUKO.co.ke