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Trump's tariff’s impact on Africa and the ambiguous role of African agency

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  • Kohnert, Dirk

Abstract

The international discussion of Trump's dispute over import tariffs for steel, aluminum and even cars is so far focused on the big global players. However, African countries suffer in particular from the planned punitive tariffs, similar to the famous African proverb: ‘When elephants fight, it is the grass that suffers’. After years of talk on partnership for economic development (AGOA, Cotonou Agreement, EPAs, etc) Trump’s tariffs mean a severe blow to participatory foreign trade and sustainable industrialization in Africa. Egypt and South Africa for example, the potentially most affected African countries, face massive job losses and earning opportunities, with all the consequences that this entails for their already fragile economy and the population in dire poverty. Trump’s intervention thus joins the continued power politics of former colonial powers vis à vis Africa. Nevertheless, despite these asymmetric power relations, unfair trade relations and the desolate state of African infant industries are not necessarily due to externalities. More often than not they are home-made. African agency plays an ambiguous role in enhancing participatory trade and indigenous industrialization.

Suggested Citation

  • Kohnert, Dirk, 2018. "Trump's tariff’s impact on Africa and the ambiguous role of African agency," MPRA Paper 87764, University Library of Munich, Germany, revised 06 Jul 2018.
    • Handle: RePEc:pra:mprapa:87764
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    References listed on IDEAS

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    1. Kohnert, Dirk & Elwert, Georg & Bierschenk, Thomas, 1993. "The long-term effects of development aid - Empirical studies in rural West Africa," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(1), pages 83-111.
    2. Morisset, Jacques, 1997. "Unfair trade? Empirical evidence in world commodity markets over te past 25 years," Policy Research Working Paper Series 1815, The World Bank.
    3. Kohnert, Dirk, 2015. "Donor’s double talk undermines African agency: Comparative study of civic agency in Burkina Faso and Togo," EconStor Conference Papers 120921, ZBW - Leibniz Information Centre for Economics.
    4. Dirk Kohnert, 2015. "Horse-trading on EU-African Economic Partnership Agreements," Review of African Political Economy, Taylor & Francis Journals, vol. 42(143), pages 141-147, March.
    5. Kohnert, Dirk, 2014. "African Agency and EU-African Economic Partnership Agreements," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49(3), pages 149-155.
    6. Kohnert, Dirk, 2014. "Horse trading? EU-African Economic Partnership Agreements (EPAs)," MPRA Paper 57070, University Library of Munich, Germany, revised 02 Jul 2014.
    7. Michael Barratt Brown, 2007. "‘Fair Trade’ with Africa," Review of African Political Economy, Taylor & Francis Journals, vol. 34(112), pages 267-277, June.
    8. Justesen, Mogens K. & Bjørnskov, Christian, 2014. "Exploiting the Poor: Bureaucratic Corruption and Poverty in Africa," World Development, Elsevier, vol. 58(C), pages 106-115.
    9. Kohnert, Dirk, 2005. "African Monetary Unions - Dominated by the North? On the Relevance of Rational Economic Reasoning Under African Conditions," MPRA Paper 82083, University Library of Munich, Germany.
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    Cited by:

    1. Adesola Ibironke, 2021. "Africa’s Trade with China and US: Has COVID-19 Changed the Trends of Trade?," Journal of Economic Impact, Science Impact Publishers, vol. 3(2), pages 55-66.

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    More about this item

    Keywords

    foreign trade; tarrifs; USA; Africa; South Africa; Egypt; Nigeria; agency; corruption;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F6 - International Economics - - Economic Impacts of Globalization
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Z1 - Other Special Topics - - Cultural Economics

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