Harare, (New Ziana) – Business on Thursday reacted coolly to an 18 percent tariff regime imposed on Zimbabwe by the US, saying it would have minimal impact on the economy as trade between the two countries was low, weighed down for decades by Washington’s unilateral sanctions.
US President Donald Trump, claiming unfair trade practices against Washington by the rest of the world, on Wednesday slapped varying tariffs on virtually all countries around the globe, to even out trade.
Zimbabwe, with an 18 percent tariff regime imposed, is among the lucky nations to be levied low rates, with some countries attracting penalties of as high as 50 percent.
But for Zimbabwe, the impact of the new tariffs on its economy is expected to be light, ironically blunted by the US itself inadvertently over the years through sanctions.
For nearly three decades, Washington has maintained a harsh sanctions regime on the country, slapped over differences between the two countries on Zimbabwe’s land reform policies.
As a result, from brisk two-way trade between the two countries in the 1980s and 1990s, this has been whittled down massively by sanctions.
The sanctions included trade restrictions, and financial blockage by the US itself, its Western allies and all global economic agencies they individually and jointly control.
According to 2023 trade statistics between the two countries – the latest available – Zimbabwe exported goods worth US$119 million to the United States, versus imports of US$45 million.
Much of Zimbabwe’s exports was made of ferrochrome, raw tobacco and sugar, while imports mainly consisted of tractors, sorghum and vegetable oils.
Over the years, to shield its economy from the combined Western sanctions pressure, Zimbabwe diverted much of its trade to Asia and the Middle East, with China and the United Arab Emirates accounting for the bulk of this, both as export markets and import sources.
Last year, for example, the United Arab Emirates took in 41.9 percent of Zimbabwe’s exports, South Africa 25.9 percent and China 19.6 percent.
“What was once an adversity, today it is a silver lining,” a prominent local businessman said, reacting to the US trade tariffs on the country.
He declined to be named for fear of being placed on Western travel restrictions, wantonly being issued in recent years by the West against anyone deemed critical of its ‘collective’ values.
“Imagine what the impact could have been had our trade with the outside world still be configured in the patterns of the 1980s and 90s where the West dominated.”
But there are voices of concern, too, over the US tariffs.
“This situation underscores the need for Zimbabwe to diversify its export markets and enhance local production to cushion the economy from such external shocks,” Confederation of Zimbabwe Retailers acting chief executive, Tapiwa Marimo, said.
“The imposition of an 18 percent tariff by the United States on Zimbabwean exports is likely to strain the country’s trade performance and contribute to a decline in exports,” he warned.
Much of the world, especially donor aid dependent Africa, will not be as lucky as Zimbabwe from the US tariffs, which took immediate effect on Wednesday.
For some countries in the third world, the tariffs are the second economic hammer blow from Washington in barely two months of the Trump presidency – global aid withdrawal by the administration was the first.
The aid, especially budgetary support, was a pillar of the economies of a lot of countries in Africa – whose withdrawal, combined with the tariffs now, will be devastating.
New Ziana
