Editorial: Namibia must pursue independent tariff regime

As global trade tensions simmer, Namibia finds itself in a precarious position, caught in the economic crossfire between the United States and South Africa. The recent imposition of a 21% tariff on Namibian exports by the US demands a measured and strategic response. While the instinct to retaliate may be strong, Namibia must resist the urge to engage in a trade war that could do more harm than good. With a fragile manufacturing sector and a heavy reliance on exports, escalating the conflict would be both imprudent and self-defeating.

Namibia’s economy thrives on exports, sending diamonds, beef and other agricultural products to international markets, including the US. However, our industrial sector remains underdeveloped, leaving us without viable alternatives to replace imported goods should tariffs rise further. In fact, Namibia already imposes a substantial 42% tariff on US imports – a steep rate by global standards.

Rather than entering into a tit-for-tat tariff dispute, Namibia should seek more strategic solutions. The most prudent course of action would be to establish an independent tariff regime, stepping away from the constraints of the Southern African Customs Union (SACU). While SACU has provided financial benefits through revenue sharing, it has also tethered Namibia to trade decisions that do not always align with its national interests.

By forming an independent tariff commission, Namibia could craft trade policies tailored to its unique economic needs, safeguarding its interests without becoming collateral damage in South Africa’s trade disputes.

Ultimately, Namibia’s economic strength lies in strategic foresight rather than reactionary measures. Avoiding a trade war in favour of a calculated, independent trade policy will pave the way for long-term economic resilience and growth.