Is the decision to take in the five United States deportees finally paying off?
Already, some economists in the neighbouring South Africa are labelling the decision as a clever move for the kingdom after US President Donald Trump yesterday lifted tariffs for Eswatini goods entering his country while South Africa has been left with a 30% tariff for its exports to the US.
As the White House announced a new package of tariffs targeting several countries, Eswatini was named among six countries exempted from the measures.
This is after President Trump signed an Executive Order issuing 15% tariffs on most African countries, except for Libya and South Africa which will pay the 30%, while Tunisia will pay 25%, as reported by Kemi Osukoya, EIC and Chief White House correspondent at Africa Bazaar magazine.
She further reported that six nations — Gabon, Guinea-Bissau, Liberia, Mauritania, Senegal and Eswatini — have been exempted from the tariffs.
The announcement comes amid growing trade tensions globally. The exemptions granted to Eswatini and a few other nations have raised speculation, particularly given the kingdom’s recent acceptance of five individuals, who were deported by US authorities.
The other exempted countries are all in West Africa. Early last month, it was reported that President Trump had a working dinner with presidents from these five countries.
The new tariffs apply broadly to imports such as steel, aluminium, electronics and selected agricultural products. South Africa’s 30% tariff on steel exports is expected to impact its manufacturing sector and disrupt regional trade dynamics. Other countries subject to various tariff rates include China, Brazil, Turkey and India, with tariffs ranging from 15 to 40% depending on product categories.
Eswatini’s exemption coincides closely with the recent deportation of the five individuals by the United States to the country. While government has not officially linked the tariff exemption to these extraditions, speculation suggests a possible connection.
Meaningful
Though Eswatini is not a major US trading partner, the tariff exemption could have meaningful implications. The country’s key export sectors such as sugar, citrus and textiles may benefit from uninterrupted access to US markets, especially as neighbouring South Africa grapples with increased trade barriers. Regional trade flows could see adjustments as businesses adapt to the new tariff landscape.
South African experts warn that while the exemption offers short-term advantages, it also places Eswatini in a complex geopolitical position. One regional trade analyst commented that trade policies often reflect broader diplomatic relationships. The analyst said Eswatini’s recent cooperation with the US on extraditions may have influenced this decision, adding that this also meant the country must navigate heightened scrutiny.
Whether the tariff exemption serves as a reward or part of a broader strategic approach remains unclear. What is certain is that the country currently enjoys a reprieve amid growing global trade uncertainties, highlighting the delicate balance between economics and diplomacy in the kingdom’s foreign relations.
Winners
Meanwhile, Lesotho, Madagascar and the Falkland Islands were also among the biggest winners from the new tariff announcement, seeing some of the steepest reductions from the rates announced on Liberation Day. On April 2, President Trump imposed a 50% tariff rate on Lesotho. However, he has since announced a new rate of 15%.
Madagascar initially faced a 47% tariff rate, which was also reduced to 15%. The neighbouring Mozambique has also received a 15% tariff together with Mauritius, Namibia, Zimbabwe and Zambia.
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