EAC exports to US market surge despite Trump tariff blitz

October 7, 2025 in Business, Markets by Editor

East African Community (EAC) member states saw a surge in exports to the United States between April and July, despite sweeping tariffs imposed by the Donald Trump administration in April 2025.

East African Community (EAC) member states saw a surge in exports to the United States between April and July, despite sweeping tariffs imposed by the Donald Trump administration in April 2025.

The UN Economic Commission for Africa (ECA), through its Sub-Regional Office for Eastern Africa, reported that the Democratic Republic of Congo (DRC) led with an 860 pc increase in exports between April and July 2025 compared to the same period in 2024.

Uganda and Rwanda more than doubled their exports, while Ethiopia and Kenya posted gains of 95 pc and 22 pc, respectively. Except for Ethiopia all are EAC members.

According to a statement, these gains are largely attributed to trade diversion effects, as Eastern African exporters—still eligible under the African Growth and Opportunity Act (AGOA)—benefited from reduced competition in the US market. Even countries previously expected to suffer, such as Madagascar and Tanzania, recorded modest growth.

AGOA expired on September 30, however according to several senior officials in the Trump administration there are plans to extend the preferential trade agreement for another one year. As of now, the duty-free/tariff-free arrangement is in abeyance.

Speaking recently in Kigali for the 2025 session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE), Andrew Mold, Director of ECA’s Eastern Africa Office said recently, “The region’s resilience is encouraging, but we must act collectively to address structural vulnerabilities and unlock inclusive, sustainable growth.”

The theme for the talks was Responding to External Shocks and Advancing Regional Economic Integration and brought together senior government officials, private sector leaders, economists, trade experts, and media representatives to assess trade performance across Eastern Africa and explore strategies for inclusive and sustainable growth.

In 2024, total trade within the EAC surpassed $11 billion, marking a 22% increase from 2023. In comparison, intra-African trade grew by 8.5 percent, far outpacing the 0.4% growth in exports to markets outside the continent. Manufactured goods—such as textiles, chemicals, cement, and pharmaceuticals—are driving this growth, highlighting the potential of regional value chains and the African Continental Free Trade Area (AfCFTA).

Priscilla Andrianarivo of the Ministry of Trade and Industrialisation in Madagascar said, “AGOA has helped, but we must prepare for a future beyond it. Diversification is no longer optional—it’s essential.”

Eastern Africa’s export performance has also been buoyed by a surge in global commodity prices. Gold prices rose by over 60 pc between January 2024 and July 2025, while coffee prices nearly doubled. Tanzania and Uganda, both major gold producers, capitalized on this trend. Uganda also benefited from strong exports of coffee, tea, fish, and flowers. Meanwhile, Kenya’s tea exports hit a record $1.7 billion in 2024, up from $1.4 billion the previous year.

Despite these gains, the session highlighted persistent structural challenges. Many countries remain heavily reliant on mineral exports, particularly gold, while the share of manufacturing in total exports continues to decline. This underscores the urgent need for economic diversification and industrial transformation, particular under the aegis of the AfCFTA. Concerns were also raised about the prevalence of non-tariff barriers and the lack of compliance to agreed trading arrangements:

Infrastructure development was spotlighted as a key enabler of trade resilience. Kenya’s Dongo Kundu Special Economic Zone, Tanzania’s Bagamoyo Port upgrades, and Rwanda’s Rusizi Port development were cited as examples of strategic investments improving logistics and regional connectivity.