Donald Trump’s presidency could lead to extra import tariff imposed on Ugandan goods landing in the US, President Museveni told legislators early this year.
Uganda exports to the US largely agricultural products, which include coffee, cocoa, base metals, and fish.
Last year, Uganda exported to the US goods totalling to $6.2million and imported goods worth $89.6 from there.
Speculation has it that the US would impose a 15% tariff hike on African products which could have a negative effect on Uganda’s economy with less income and fewer jobs the likely result.
In March, President Museveni, while addressing Members of Parliament from his Ruling National Resistance Movement party on Tuesday in Kyankwanzi aired out his concerns about Uganda’s future with the US under the Trump Administration.
Museveni told the MPs that while he likes Trump for his candor, if elected President he was unlikely to help better Uganda’s trade relations with the US.
Speaking to Uganda’s worryingly declining exports and unfavorable balance of trade, Museveni noted; “The United States could limit our exports there especially under Mr. (Donald) Trump, who l like because he calls a spade a spade.”
According to ChimpReports, Donald Trump boosted his support by tapping into the growing anger among US voters who think free-trade policies have devastated US communities.
Through his campaigns, he outlined plans to clamp down on what he terms as “horrible, horrible” trade deals with other nations.
AGOA bad business
So far, Uganda has little to show for African trade agreement (African Growth and Opportunity Act of 2000) with the United States which program may be scrapped by the Trump Administration.
It appears some countries, including Uganda, did not have the capacity to reap fully the benefits from Agoa. Uganda has the highest youth unemployment in Africa, estimated at 62%.
Unlike Kenya or Tanzania, Uganda failed to establish an Agoa strategy to mobilise and guide those producing goods through the initiative.
Trump also called for higher (45 percent) tariff on Chinese goods, terming the Asian nation as the US’s greatest economic adversary.
