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Uganda is among several nations facing new economic headwinds after US President Donald Trump announced a baseline 10% tariff on all imports to the United States, effective 5 April 2025.
The sweeping trade decision, executed via executive order, is part of a broader agenda to address what the Trump administration describes as “unfair trade practices”, including currency manipulation and trade barriers.
The move comes just months after the US revoked Uganda’s eligibility for preferential trade under the African Growth and Opportunity Act (AGOA), citing gross violations of internationally recognised human rights.
Now, with the new tariff regime in place, Ugandan exporters are bracing for a period of uncertainty and potential economic disruption.
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Why Uganda Was Targeted
The Trump administration says Uganda has been implementing up to 30% tariffs on US goods while also maintaining trade barriers that the US believes disadvantage American exports.
The 10% tax is therefore positioned as a “reciprocal tariff”, meant to create what Trump calls a “fairer and freer” trade environment.
Despite being a relatively modest trade partner, Uganda exported $132 million worth of goods to the US in 2023, led by coffee ($58.2M), vanilla ($16.2M), and casein ($13.4M).
Meanwhile, US exports to Uganda totalled $220 million, largely comprising aircraft parts, petroleum gas, and electrical components.
For Uganda, the newly imposed tariff will increase the cost of doing business with the US, likely making its products less competitive in an already crowded market.
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Implications for Ugandan Exporters
With Uganda’s exports to the US growing at an annualised rate of 14.6% over the past five years, the new tariffs could interrupt a trajectory of steady trade growth.
Sectors like coffee and vanilla, which form the backbone of Uganda’s agricultural exports, are particularly vulnerable, as buyers may now look elsewhere to source products at lower prices.
Regional Tensions and Trade Rebalancing
The tariffs aren’t unique to Uganda. Neighbouring Kenya and Tanzania have also been slapped with the same 10% levy, while countries such as China, Vietnam, and South Africa face far steeper duties under a more targeted tariff framework announced by the Trump administration.
Uganda, a member of both the East African Community (EAC) and COMESA, may now look to diversify its trade relationships within Africa and Asia to cushion the blow.