Namibia’s import tariffs determined in South Africa
Namibia lacks its own tariff policy and is unable to independently address new tariffs imposed on its exports to the United States. This is because all tariff-related decisions are made by a board based in South Africa.
The Southern African Customs Union (SACU) Tariff Board, an independent institution composed of experts from member states, determines tariffs for Namibia and other SACU members.
Local economists argue that Namibia has suffered ‘collateral damage’ in the trade conflict between the US and South Africa. A 21% reciprocal tariff has been imposed on Namibian exports to the US as a consequence of South Africa’s SACU membership.
Namibia primarily exports diamonds under the African Growth and Opportunity Act (AGOA), a US initiative aimed at supporting sub-Saharan African economies and strengthening economic ties with the region. Previously, Namibian exports to the US were subject to zero tariffs, while Namibia imposed a 42% tariff on US imports.
However, US president Donald Trump on Wednesday implemented a baseline tariff of 10% on all imports into the US, including those from Namibia.
“This is a flat rate not based on any specific criteria,” a US-based Namibian financial expert explained. “Trump identified countries with trade deficits with the US and applied varying tariff rates. The formula he used is questionable, but this has resulted in an additional 21% reciprocal tariff on Namibian imports.”
As a result, Namibian exports to the US will now face a total tariff rate of 31%. Some countries, such as Lesotho, have been hit with an even higher rate of 50% on top of the baseline 10%.
“Namibia does impose tariffs on US imports, so Trump’s decision is not entirely unjustified. However, initiatives like AGOA were created to enhance US soft power, and Trump is focusing solely on financial gains,” the expert added.
‘Collateral damage’
Lesotho has been subjected to the highest US tariff rates, with American buyers now required to pay an additional 50% import tax on goods from the small southern African nation. The US runs a significant trade deficit with Lesotho, which exports textiles – including jeans – and diamonds to America, according to the BBC.
Other African countries affected by the new tariffs include Madagascar (47%), Mauritius (40%), Botswana (37%) and South Africa (30%). Nigerian exports will also face a 14% tariff.
Economist Dr John Steytler noted that while Namibia benefits significantly from SACU revenues, the lack of an independent tariff policy presents serious disadvantages.
“A developing country like Namibia should have a zero-tariff policy on essential imports, such as technology, to facilitate development,” Steytler said. “South Africa, with its more advanced economy, can afford to impose tariffs to protect local manufacturers. Namibia, however, cannot afford the same approach and is suffering collateral damage as a result,” the former presidential economic advisor said.
One of Namibia’s largest exporters to the US, diamond company Namdeb, yesterday said it will “continue to assess the environment”.
“It is too early to provide a definitive response,” its spokesperson, Grace Luvindao, said.
The Southern African Customs Union (SACU) Tariff Board, an independent institution composed of experts from member states, determines tariffs for Namibia and other SACU members.
Local economists argue that Namibia has suffered ‘collateral damage’ in the trade conflict between the US and South Africa. A 21% reciprocal tariff has been imposed on Namibian exports to the US as a consequence of South Africa’s SACU membership.
Namibia primarily exports diamonds under the African Growth and Opportunity Act (AGOA), a US initiative aimed at supporting sub-Saharan African economies and strengthening economic ties with the region. Previously, Namibian exports to the US were subject to zero tariffs, while Namibia imposed a 42% tariff on US imports.
However, US president Donald Trump on Wednesday implemented a baseline tariff of 10% on all imports into the US, including those from Namibia.
“This is a flat rate not based on any specific criteria,” a US-based Namibian financial expert explained. “Trump identified countries with trade deficits with the US and applied varying tariff rates. The formula he used is questionable, but this has resulted in an additional 21% reciprocal tariff on Namibian imports.”
As a result, Namibian exports to the US will now face a total tariff rate of 31%. Some countries, such as Lesotho, have been hit with an even higher rate of 50% on top of the baseline 10%.
“Namibia does impose tariffs on US imports, so Trump’s decision is not entirely unjustified. However, initiatives like AGOA were created to enhance US soft power, and Trump is focusing solely on financial gains,” the expert added.
‘Collateral damage’
Lesotho has been subjected to the highest US tariff rates, with American buyers now required to pay an additional 50% import tax on goods from the small southern African nation. The US runs a significant trade deficit with Lesotho, which exports textiles – including jeans – and diamonds to America, according to the BBC.
Other African countries affected by the new tariffs include Madagascar (47%), Mauritius (40%), Botswana (37%) and South Africa (30%). Nigerian exports will also face a 14% tariff.
Economist Dr John Steytler noted that while Namibia benefits significantly from SACU revenues, the lack of an independent tariff policy presents serious disadvantages.
“A developing country like Namibia should have a zero-tariff policy on essential imports, such as technology, to facilitate development,” Steytler said. “South Africa, with its more advanced economy, can afford to impose tariffs to protect local manufacturers. Namibia, however, cannot afford the same approach and is suffering collateral damage as a result,” the former presidential economic advisor said.
One of Namibia’s largest exporters to the US, diamond company Namdeb, yesterday said it will “continue to assess the environment”.
“It is too early to provide a definitive response,” its spokesperson, Grace Luvindao, said.
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