Updated April 3rd 2025, 13:07 IST
The recent American tariffs imposed on countries like Sudan, Burundi, and Yemen are likely to have far-reaching consequences for their economies, especially in their bilateral trade with the United States.
The U.S. imposed a 10% baseline tariff on all goods from these countries starting April 5, 2025, as part of Trump’s global tariff policy announced on April 2, 2025. Here’s what that could mean:
The economy of Sudan has traditionally been based on agriculture, with gum Arabic—a primary ingredient in products such as soft drinks and candies—being one of the main exports. The United States has been an important market for this product. Still, the conflict has interrupted production and supply chains, causing more gum Arabic to be smuggled into neighboring states like Chad, South Sudan, and Egypt.
Burundi's economy is largely agricultural, and coffee and tea are major exports. Burundi's exports were around $208 million in 2022, while imports stood at around $1.26 billion, which reflects a trade deficit. The United States is one of Burundi's export partners, with around 4.5% of its exports going to the United States in 2018. The new U.S. tariffs will slow down Burundi's export growth, especially in its agricultural sector, potentially exacerbating its trade imbalance.
The economy of Yemen has been hit by conflict, with sectors like crude oil production, textiles, and food processing running below capacity. In 2020, Yemen's exports were worth about $37.5 million, while imports were much larger at about $801 million in 2022.
The United States is an important trade partner, with 7.03% of Yemen's exports going to the country in 2023. U.S. tariffs would further stretch Yemen's thin export revenues, making economic stabilization and recovery more difficult.
American tariffs against Sudan, Burundi, and Yemen will also probably make it harder for these countries to overcome their economic difficulties. Additional trade barriers in the form of tariffs may discourage export earnings, widen trade deficits, and hamper attempts at economic recovery in countries already facing war and instability.
Published April 3rd 2025, 13:07 IST