On April 2, 2025, US President Donald Trump declared “Liberation Day” while announcing new reciprocal tariffs that have set a protective tone in the US’s international economic relations.
This marks a notable departure from the previous US emphasis on free trade, which had long been a cornerstone of its economic policy and support for developing nations through platforms like the World Trade Organization (WTO).
Lesotho is high hit with 50%. Other African countries hit with extra tariffs include 47% for Madagascar, 40% for Mauritius, 37% for Botswana and 30% for South Africa.
Nigerian exports will be hit too – at a rate of 14%.
Kenya, Ghana, Ethiopia, Tanzania, Uganda, Senegal and Liberia were among those countries whose exports to the US will be subject to the baseline tariff of 10%. The US is not running a trade deficit with these countries.
The impact of these tariffs on countries like Liberia is causing concern among economic leaders, including Senator Amara Konneh, who chairs the Public Accounts Committee
Senator Konneh, who previously served as Liberia’s Finance Minister from 2012 to 2016, expressed his apprehensions regarding the implications of the new 10% tariff on Liberia’s already modest trade with the United States.
He emphasized that the newly introduced tariffs do not consider the unique economic landscape of lower-income countries like Liberia, whose fiscal conditions and institutional capacities diverge significantly from those of more developed nations.
According to the United States Trade Representative’s 2024 report, Liberia exported goods worth approximately $72.5 million to the US in the past year, with rubber comprising the vast majority, valued at $63.5 million.
This figure represented a robust 25.5% increase over the previous year. Nonetheless, a looming reduction in rubber production, which dropped to 64,516 metric tons in 2023 from over 87,000 metric tons in 2021, poses challenges to Liberia’s economic vitality.
“The lifeline of our economy—rubber—has seen major downturns, and these new tariffs could stifle growth further,” Konneh said in Facebook post. He highlighted how the sharp increase in duties, from an average of 3.3% prior to Trump’s announcement to a sudden 10%, is likely to deter buyers and push them to seek alternatives from other countries with fewer trade obstacles.
Konneh fears that should these tariffs persist or increase, it could lead to a decline in Liberia’s exports and further vulnerability in the global market in the context of established trade platforms.
He explained: The African Growth and Opportunity Act (AGOA) has historically provided Liberia with significant trade benefits, allowing nearly 7,000 products to enter the US duty-free. However, recent developments raise serious questions about the future viability of this program as the tariffs cut across all goods entering the US, potentially negating the advantages provided under AGOA
‘The implications of a 10% tariff are multifaceted—not only could they hinder Liberia’s trade with the US, but they could also instigate a ripple effect with its major trading partners in Europe. With Liberia relying heavily on exports to countries like Switzerland, the United Kingdom, and Germany, any tariff escalation from these nations could spell disaster for the country’s economy.
“The conditions under which we operate are already fragile,” Konneh noted. “With diminishing US development assistance and these new tariffs, we must prepare for a growing deficit in our trade balance. Increased taxes on goods and services, as seen with the recent raise in the Goods and Services Tax (GST) from 10% to 12%, only compound these issues for our citizens.”
As Liberia grapples with the potential fallout of Trump’s tariff implementation, Senator Konneh talks the importance of a unified response from the government. “President Boakai and his economic team need to lay out transparent strategies to mitigate adverse effects on the economy and revenue streams,” he urged.
According to the Gbarpolu County Senator this includes engaging with key concessionaires, such as ArcelorMittal and Ivanhoe International (HPX), to ensure that Liberia maximizes benefits from its natural resources. “Our partnership with these corporations is crucial—but it must be reciprocal and grounded in fairness,” Konneh pointed out, reflecting on the necessity of review and renegotiation of fiscal incentives granted to concessionaires.
“While the path ahead is fraught with challenges, our commitment to collaborating with government and trade partners continues unyielded. We must prioritize the welfare of our citizens and engage in prudent fiscal policies rather than seeking quick fixes through increased taxation,” He said.
