Analysts estimate that over $1.5 trillion has been wiped off the value of shares on Wall Street, with the Dollar falling and oil prices also seeing a downward trend.  

Chifi Mhango, Chief Economist at Don Consultancy Group, shared his thoughts on the matter during an interview, He acknowledged the often cited saying, "When the US sneezes, the world catches a cold," highlighting the global ripple effect of Trump's trade policies. Mhango explained that Trump’s decision to impose tariffs is part of an effort to protect the US domestic market, but this has significant global consequences. “Such policies inevitably affect global trade, especially in sectors directly hit by these tariffs,” he said.

Mhango also noted the unintended consequences of Trump's tariffs. While the US aims to protect its industries, these measures may ultimately have the opposite effect. “Comparing the US tariffs with those of other countries, like China, reveals a disparity.

China’s 67% tariff on imports far exceeds the US’s 34%,” Mhango pointed out, suggesting that Trump's policies may not be as effective as intended.

For Africa, Mhango believes this situation presents both challenges and opportunities. He pointed out that African countries need to rethink their strategies in response to global market changes. "Now is the time for African nations to explore new opportunities. For example, countries like Zambia could find ways to benefit from lower tariffs on their exports to the US compared to Chinese goods," he said.

The African Continental Free Trade Area also becomes increasingly vital as the continent seeks to navigate the changing global trade environment. Mhango stressed that strengthening intra-Africa trade could reduce reliance on fluctuating international markets, offering stability in uncertain times.

Despite the uncertainty of Trump's policies, Mhango warned that the impacts of these changes may extend beyond his presidency, potentially reshaping global trade in the years to come.

--ChannelAfrica--