Trump Suspends Tariffs on Kenya for 90 Days Following CBK’s Ksh12 Billion Trade Loss Alert
Just hours after the Central Bank of Kenya (CBK) raised alarms over a potential Ksh12.8 billion ($100 million) annual export loss, former U.S. President Donald Trump has suspended recently imposed tariffs on Kenya for 90 days.
In a statement released via social media on Wednesday evening, Trump announced a temporary halt to the reciprocal tariffs introduced last week. The suspension, which excludes China, comes after extensive consultations with countries impacted by the trade measures—including Kenya.
"Over 75 countries have engaged with U.S. agencies like Commerce, Treasury, and USTR to discuss trade barriers and tariff policies," Trump stated. "None of them retaliated, which is why I've authorized a 90-day pause and reduced the reciprocal tariff to 10 per cent, effective immediately."
This marks a significant turnaround from the April 2 executive order Trump signed, which had imposed a 10 per cent base tariff on exports from Kenya to the U.S.—a move expected to disrupt key sectors such as textiles, tea, and coffee, which have traditionally benefited from AGOA (African Growth and Opportunity Act) exemptions.
Under the now-suspended tariffs, Kenya’s annual Ksh109.7 billion (USD 784 million) export trade with the U.S. faced a major setback. The CBK had warned that the tariffs could lead to job losses and reduced revenues, particularly for businesses that heavily rely on the U.S. market.
Despite the temporary relief, Kenyan authorities remain cautious. CBK Governor Kamau Thugge acknowledged the potential for export disruption but downplayed any immediate economic threat, emphasizing that Kenya’s broader economy is resilient enough to absorb such shocks.
Kenya, ranked as the U.S.’s sixth-largest trading partner in Africa, was also at the center of a separate trade spat. The U.S. had expressed concerns over Nairobi's recent decision to impose a 50 per cent duty on American corn imports, calling it a restrictive and unfair practice.
While Trump’s 90-day pause offers a momentary reprieve, trade analysts say the move signals deeper negotiations ahead. The coming weeks will likely determine whether the suspension becomes permanent or if the tariff war resumes with broader consequences for bilateral trade.