The Ministry of International Relations and Trade says US President Donald Trump’s 21% import tariff on Namibian goods is likely to reduce the competitiveness of Namibian beef and fish exports in the US market.
This, in effect, will lead to a decrease in sales volume and demand for Namibian products due to price increases driven by the tariff.
“Overall, the tariffs could disrupt established supply chains and negatively affect Namibia’s export earnings, while also threatening the broader preferential stability for Namibian products under the Generalized System of Preferences (GSP) regime,” said the Ministry’s Executive Director, Penda Naanda.
Namibia exported N$8.5 million worth of frozen hake fillets to the US between January and February this year.
The country also earned export revenue from the US market amounting to N$1.4 billion from uranium, N$114.5 million from diamonds, and N$22.7 million from salt during the first two months of the year. In addition, Namibia exported 976 kg of beef to the US during the first quarter of last year.
“In terms of mitigating the impacts of the tariffs imposed, stakeholder engagement will be imperative to assess and establish the extent of the effects. These tariffs, introduced by Donald Trump, aim to address what the US perceives as a lack of reciprocity in trade relations and the suppression of domestic wages and consumption,” Naanda said.
He added that the Ministry is exploring several strategies to mitigate the impact of the 21% tariffs but is not in a position to disclose the details at this time.
The Ministry also emphasized that the US move undermines the spirit of the African Growth and Opportunity Act (AGOA), a non-reciprocal trade arrangement intended to support developing and least developed countries (LDCs) in Africa by providing preferential access to the US market.
Namibia has mainly exported diamonds under the AGOA programme.
“Unfortunately, this measure could result in unfair market conditions for Namibian products competing in the US market,” Naanda said.
The 21% import tariff imposed by the US is reportedly a response to Namibia’s own 42% tariff on American products. Trump has stated that his tariff policy is intended to address imbalances in trade and protect US domestic industries.
However, not all US goods entering Namibia are subject to tariffs, as Namibia’s duties are determined under the Southern African Customs Union (SACU) tariff framework.
“In terms of the SACU Agreement, the Council shall, on the recommendation of the Tariff Board, approve customs duties to be applied to goods imported into the Common Customs Area from outside that area,” he explained.
