- U.S. President Donald Trump signs executive order imposing new reciprocal tariffs on 69 countries and the EU.
- Kenya spared from high-level tariffs; faces a low baseline rate of 10%.
- The move is part of Trump’s push for “fair trade” and retaliation against nations taxing American goods.
- Kenya’s smaller trade imbalance and diplomatic strategy credited for avoiding harsher penalties.
- Concerns remain over potential export losses and future implications post-AGOA.
Global Shake-up: Trump Signs Sweeping Tariff Order
In a landmark move to reshape the global trade landscape, former U.S. President Donald Trump has imposed reciprocal tariffs on 69 countries, a decision that has sparked reactions worldwide. Under the new policy, nations that tax U.S. goods or have trade imbalances with America face tariffs ranging from 10% to 41%.
The policy, signed into law via executive order on July 31, 2025, is set to take effect on August 7. It targets countries seen to have exploited American markets or imposed discriminatory trade practices.
Kenya Among Few Spared from Severe Tariffs
Despite fears of being lumped among heavily affected countries, Kenya was spared from the highest tariff bracket. While it does face a modest 10% reciprocal tariff, this is significantly lower than the 30–40% range slapped on countries like India, South Africa, Switzerland, and Taiwan.
Kenya’s limited export volume to the U.S. and relatively balanced trade profile are believed to have influenced this outcome. According to trade analysts, Kenya’s VAT on U.S. goods (16%) had technically qualified it for retaliation, but diplomatic engagement and bilateral goodwill helped secure softer treatment.
While Kenya dodged the harshest measures, the 10% tariff is expected to affect exports worth approximately KSh 12.9 billion (US $100 million), especially in textiles, flowers, and processed foods.
However, according to a Central Bank of Kenya (CBK) assessment, the impact on GDP will be minimal—less than 1%. Nonetheless, the Kenya Private Sector Alliance (KEPSA) has called for urgent support to exporters who may feel the pinch.
Government’s Diplomatic Playbook
The Kenyan government responded swiftly to initial tariff threats earlier in 2025. The Ministry of Investments, Trade, and Industry had sent emissaries to Washington D.C., advocating for Kenya’s exemption.
Trade Cabinet Secretary Rebecca Miano welcomed the lighter tariff, saying:
“This outcome is a testament to strong Kenya-U.S. relations. We will continue engaging to protect our exporters and build long-term resilience.”
Kenya is also working on a bilateral trade agreement with the U.S. to replace the African Growth and Opportunity Act (AGOA), which expires in September 2025.
