Zimbabwe News

Zimbabwe to Suspend Tariffs on US Imports in Response to New Trade Measures

Harare, Zimbabwe – In a surprise move that could reshape bilateral trade dynamics, Zimbabwe will suspend tariffs on US imports, President Emmerson Mnangagwa announced on Saturday. The decision comes just days after US President Donald Trump imposed 18% tariffs on goods imported from Zimbabwe, a country that has faced economic challenges and long-standing sanctions from the West.

In a statement shared on his official X (formerly Twitter) account, Mnangagwa declared:

“I will direct the Zimbabwean government to implement a suspension of all tariffs levied on goods originating from the United States.”

According to Mnangagwa, the move is intended to facilitate the expansion of American imports into the Zimbabwean market, while at the same time encouraging increased Zimbabwean exports to the US. The announcement is already sparking heated debate both locally and internationally, as analysts question the potential economic impact and political motivations behind the decision.

Zimbabwe to Suspend Tariffs on US Imports Despite Limited Trade Volume

Although Zimbabwe has trade links with the United States, the total goods trade between the two countries amounted to just $111.6 million in 2024, according to US government data. The majority of Zimbabwe’s exports to the US consist of tobacco and sugar, while imports are largely machinery, vehicles, and manufactured goods.

President Mnangagwa’s decision to suspend tariffs has raised eyebrows, especially given that Zimbabwe’s primary trading partners are not the US, but rather China, South Africa, and the United Arab Emirates. The move, some analysts say, appears to be a diplomatic overture to Washington, possibly aimed at easing tensions and paving the way for the removal of US-imposed sanctions on Zimbabwean leaders.

“This announcement seems more symbolic than economic,” said political analyst Tendai Moyo. “Zimbabwe’s exports to the US are marginal. The decision may be more about political signaling than trade expansion.”

The relationship between Zimbabwe and the United States has been tense for over two decades. During the presidency of Robert Mugabe, Washington imposed comprehensive sanctions in response to human rights abuses, electoral fraud, and property seizures targeting white commercial farmers. While the original sanctions program was formally abolished by the Biden administration in 2023, it was immediately replaced by targeted sanctions against key figures in Mnangagwa’s government and ruling party, ZANU-PF.

These sanctions, which cite corruption and human rights violations, have continued to be a source of friction between the two countries.

Mnangagwa previously slammed Biden’s sanctions as “illegal and unjustified”, and many in Zimbabwe see the current administration’s approach as a continuation of Western pressure to influence domestic politics.

With Trump returning to office in 2025, observers speculate that Mnangagwa may view this tariff suspension as a gesture of goodwill toward the new US administration — or possibly as an attempt to open channels for negotiation over the removal of sanctions.

The reaction to the announcement has been sharply divided. Prominent journalist and government critic Hopewell Chin’ono described the decision as a “knee-jerk reaction” that lacks long-term strategic planning.

“Acting unilaterally contradicts the principles of regional economic cooperation,” Chin’ono posted on X. “It also risks sidelining Zimbabwe’s key trade partners in SADC.”

He questioned whether the country even exports enough to the US to justify suspending tariffs, suggesting the move could undermine Zimbabwe’s regional economic alliances without delivering significant gains.

Critics also argue that such unilateral trade policy decisions should be made with consultation and economic impact assessments, particularly given Zimbabwe’s fragile economic situation, high inflation, and limited foreign currency reserves.

Meanwhile, some business groups have cautiously welcomed the move, citing the need to lower import costs for machinery and industrial equipment, most of which originates in the US or passes through US-controlled markets.

As it grapples with crippling inflation, power shortages, and a constrained manufacturing sector, Mnangagwa’s government is under increasing pressure to attract foreign investment and improve the business climate. The tariff suspension may be viewed as part of a broader effort to signal openness to the West and revive bilateral ties, even if such steps come with political risks.

However, without reciprocal action from Washington — such as removing sanctions or increasing development aid — it remains unclear how much economic benefit Zimbabwe will derive from suspending tariffs on US imports.

Trade expert Dr. Nyarai Dube summarized the uncertainty:

“This could either be a smart diplomatic play or a costly misstep. Much depends on how the US responds.”

For now, its decision to suspend tariffs on US imports marks a bold and controversial shift in its trade policy, one that could redefine its international economic relationships — or further complicate them.

Source- Punchng

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