SACU calls for review of US tariffs

The Southern African Customs Union (SACU) has called on the United States to review its recent tariff measures, urging Washington to observe differential treatment by exempting Least Developed Countries (LDCs) and African Growth and Opportunity Act (AGOA)-eligible nations.

The call was made in a recent joint communiqué issued by SACU’s Council of Ministers following the announcement that U.S. President Donald Trump had imposed reciprocal tariffs on goods from Lesotho, raising them from zero to 50 percent.

The regional grouping expressed concern over the growing use of unilateral measures that fragment global trade, specifically citing the U.S. decision to implement new tariffs effective April 9, 2025.

The move could have far-reaching implications, not only for exports to the United States but also for the broader multilateral trading system.

“While acknowledging the 90-day pause on the reciprocal tariffs – effective until July 9, 2025 – and the interim application of a universal 10 percent tariff, the uncertainty surrounding SACU exports to the U.S. remains. There is therefore a need to address this issue as a matter of urgency,” the union’s communiqué stated.

SACU criticised the unilateral imposition of tariffs without prior consultation with affected member states, calling it a departure from international norms that could undermine global trade and the foundational principles of the multilateral trading system.

It cautioned that the introduction of tariffs would reverse progress made in trade relations with the United States, which has contributed to lifting millions out of poverty across the African continent.

SACU reaffirmed its commitment to a “predictable, development-oriented, transparent, fair, inclusive, and rules-based multilateral trading system,” with the World Trade Organisation (WTO) at its core.

The bloc acknowledged the WTO’s role in promoting global economic growth and called on it to serve as a platform for dialogue aimed at preventing escalating trade disputes.

To protect its internal market, SACU emphasised that any partnership negotiations with the United States must safeguard the union’s common external tariff and avoid undermining regional industrial capacity.

The union further committed to prioritising the implementation of the African Continental Free Trade Area (AfCFTA), particularly by finalising outstanding rules of origin in key sectors such as clothing, textiles, and automotive manufacturing. SACU also plans to coordinate export strategies to maximise the benefits of existing trade agreements.

“The SACU region is ready to engage with the United States to find an amicable solution to current trade concerns, and to pursue cooperative approaches that promote mutually beneficial trade and investment relations while preserving existing supply chains,” the statement concluded.