Zim Faces New U.S. Tariffs Under Trump's “Reciproc...

Zim Faces New U.S. Tariffs Under Trump's “Reciprocal Tariff” Policy

Zim Now Writer

The Trump administration has unveiled new "reciprocal tariffs" targeting Zimbabwe, imposing an 18% duty on the country’s exports to the United States.

This policy, announced yesterday, is based on a controversial formula that calculates the tariffs other countries allegedly charge the U.S.

In 2024, Zimbabwe exported US$67.8 million worth of goods to the U.S., with key exports including tobacco, sugar, and ferroalloys. Despite Zimbabwe's modest export volume, the new tariffs are expected to further increase costs for local exporters, particularly in the tobacco industry, which already faces steep U.S. tariffs and excise taxes.

The administration’s tariff calculation method has sparked criticism. The White House claims that Zimbabwe "charges" a 35% tariff on American goods, based on the US$24.1 million trade deficit between the two nations divided by Zimbabwe’s total exports to the U.S.

This formula set the new reciprocal tariff at 18%, half the purported 35% charge—though Zimbabwe’s duties on U.S. imports vary by product, rather than adhering to a single, uniform rate.

While Zimbabwe’s trade with the U.S. remains relatively small, the new tariffs could pose significant challenges for Zimbabwean exporters, especially in the tobacco and mining sectors, as they work to maintain competitiveness in the U.S. market.