Global Analysts warn of far-reaching consequences from new US tariffs.
Image: James Wiseman/Unsplash
In the wake of the recent announcement regarding the sweeping global US tariffs, analysts from South Africa, across the African continent, and internationally have weighed in on the potential repercussions of these measures.
Comments made on Monday highlight diverse perspectives with implications for trade dynamics, economic growth, and geopolitical relationships.
South African Perspectives
On Monday, during a webinar hosted by the South African Institute of International Affairs (SAIIA), Economist Dr Nandi Mthembu emphasised that the US tariffs could significantly impact local industries dependent on imports.
“Our manufacturing sector, particularly in textiles and agriculture, could face increased costs, which may ultimately lead to higher prices for consumers,” she stated, advocating for government intervention to support affected businesses.
Trade analyst Dr Sipho Nkosi commented at a roundtable discussion organised by the Chamber of Commerce.
“While tariffs might protect certain local industries in the short term, they could also trigger retaliatory measures from trading partners, further complicating our economic recovery post-pandemic.”
African Outlook
Across the continent, reactions were similarly cautious. At a conference in Nairobi, Kenya, conducted by the African Economic Research Consortium (AERC), regional analyst Amina Mwangi warned that the US tariffs could exacerbate existing trade imbalances within Africa.
“Many African nations rely heavily on imports from the global market. Increased tariffs could stifle intra-African trade initiatives that have gained momentum under the African Continental Free Trade Area (AfCFTA),” she remarked.
During a panel discussion on international trade in Accra, Ghana, economist Kwame Owusu highlighted the potential for tariffs to disrupt supply chains.
“The ripple effects could be felt across multiple sectors, especially in agriculture and technology, where input costs could rise sharply,” he said, calling for a unified African response to safeguard continental interests.
International Insights
Internationally, analysts from Europe and North America have also voiced their concerns.
In a report released Monday by the European Centre for International Political Economy, lead analyst Maria Rossi pointed out that the tariffs could increase market volatility.
“In an interconnected world, protectionist measures like these can have far-reaching consequences, not just for the countries involved but for global markets as a whole,” she stated in a press briefing in Brussels.
Meanwhile, in Washington DC, trade expert Dr James Carter remarked during a podcast that the tariffs could undermine recent trade agreements.
“This is a risky move that could alienate key allies and disrupt the delicate balance we’ve been trying to achieve in international trade relations,” he warned.
As the implications of the US tariffs unfold, analysts from South Africa, the broader African continent, and beyond continue to advocate for careful consideration of the long-term effects of such protectionist policies.
IOL