Customs union demands exemption from USA tariffs

The five member states of the Southern African Customs Union (SACU), founded in 1910, including Namibia, have called on the US government to withdraw the tariffs suddenly imposed by President Donald Trump.


During a SACU ministerial meeting in Johannesburg this week, chaired by Namibia's Finance Minister Ericah Shafudah, Botswana, Eswatini, Lesotho, Namibia and South Africa "noted with concern the increase in unilateral measures aimed at fragmenting global trade. These include the tariffs that the US government intends to introduce with effect from April 9, 2025," the communiqué published afterwards stated. “Although the tariffs have now been suspended for the time being until July 9 and a tariff rate of ten percent currently applies, the uncertainty regarding SACU exports to the US remains.”


SACU has called on Washington to “consider differential treatment, in particular the exemption of least developed countries and African Growth and Opportunities Act (AGOA)-eligible countries from these tariff measures.” Finance Minister Ericah Shafudah said“ the SACU Council of Ministers is now calling for ”urgent diplomatic engagement to resolve the matter before the tariff pause expires on July 9."


Twenty years ago, the US granted selected African countries such as Namibia and Lesotho duty-free and tariff-free access for their exports to the US through AGOA. This agreement expires at the end of the year and would have to be renegotiated. Economists in Africa doubt whether the Trump administration will do this. The ministers also stated in Johannesburg that the SACU region is willing to work with the US “to find a mutually agreeable solution to its trade concerns and to seek cooperative solutions that promote mutually beneficial trade and investment relationships while preserving existing supply chains.” In 2023, SACU's exports to the rest of the world amounted to 127.6 billion rand. Namibia's exports to the USA include diamonds, fish, beef, beer and barbecue charcoal.