African Apparel Exporters to USA Face Uncertainty Under Trump’s Protectionist Posture
In 2024, the top apparel exporters to the USA were Morocco , Kenya, Tunisia, Madagascar, and Lesotho. Most countries rely on the Africa Growth and Opportunity Act (AGOA), while some enjoy a Free Trade Agreement (#FTA) to have preferential access to the US market. Therefore, the uncertainty around the extension of the #AGOA is not conducive to their business. Furthermore, US President Trump has threatened to hit these countries with higher tariffs from the USA, although he suspended the execution to allow for negotiations.
Morocco and Tunisia are North African countries and do not fall under AGOA which is targeted at sub-Saharan Africa. Morocco is one of the rare African countries which enjoy a Free Trade Agreement (#FTA) with the USA which came into effect in 2006. Similarly, Tunisia and USA entered into a Trade Investment Framework Agreement (#TIFA) which came into force in 2005.
| No | Country | Apparel Exports to US M$ |
|---|---|---|
| 1 | Morocco | 1200 |
| 2 | Kenya | 600 |
| 3 | Tunisia | 500 |
| 4 | Madagascar | 450 |
| 5 | Lesotho | 350 |
Ethiopia joined AGOA in 2000, when the program started, but lost its privileges in 2022, with the US citing human rights violations and Tigray conflict as primary reasons for the suspension. As a consequence, Ethiopian garment exports to the USA dipped drastically. It is worth noting that the garment and footwear industry in Ethiopia is dominated by Chinese firms.
The small kingdom of Lesotho distinguished itself as the country being slapped by one of the highest tariff rate as Trump attempts to close the trade deficit. It remains to be seen what Lesotho can import from the US in order to satisfy the Trump’s rigid requirements.
Kenya is definitely worth a mention thanks to its meteoric rise in the global apparel ecosystem and its exponential increase in exports to the US under AGOA. In December 2022, Kenyan President Ruto attended the US-Africa Leaders Summit to consolidate ties with US and position Kenya as a key partner in East Africa.
The current AGOA is set to expire in September 2025 and a decision is expected by July 2025. Prior to the inauguration of President Trump, the signs were positive for a re-authorization by the US Congress, but Trump appears to have turned the tables with its ‘America First’ policy.