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An analysis of African regional economic communities' reactions to the USA trade policy

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  • Ngonidzashe Chiranga

    (Tshwane University of Technology)

Abstract

The USA, after President Trump took office in 2025, took a position of using tariffs as a tool to try to correct historically unfavorable trade outcomes with China and the rest of the world. One wonders from an economic perspective if this economic and political position the USA has chosen to take is economically sustainable in the long run? The paper seeks to answer, firstly, what has been Africa's RECs economic reaction towards the USA's tariff war? Also, what is Africa's welfare loss from the continued use of tariffs as a trade instrument? The study's novelty contributes to the body of knowledge through a stock of new literature. Most studies have focused on the 2018 trade war, but few have examined the 2025 trade war, which spilled over to Africa, previously insulated from trade wars, providing new literature. The paper finds that the trade war has forced Africa into two economic positions: out of desperation, small open economies are either aligned with China or the USA. However, Africa suffers negative welfare outcomes when the trade war persists. The paper recommends the application of mature diplomacy in handling trade disagreements and for small economies dependent upon large economies in trade disputes to diversify so as avoid economic collapse in response to trade positions they take.

Suggested Citation

  • Ngonidzashe Chiranga, 2026. "An analysis of African regional economic communities' reactions to the USA trade policy," Development Finance Agenda, Chartered Institute of Development Finance, vol. 11(2), pages 20-22.
  • Handle: RePEc:afj:journ4:v:11:y:2026:i:2:p:20-22
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    File URL: https://journals.co.za/doi/abs/10.10520/ejc-defa_v11_n2_a5
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