Free Trade

Africa and Europe at crossroads

On April 9, 2025, the Trump Administration imposed a 90-day pause on its sweeping new tariffs – temporarily halting a flat duty on all imports except from China, which now faces a staggering 125% tariff. This move came just a week after the imposition of at least a 10% tariff on all countries except a few like Russia. This latest salvo in the ongoing trade wars underscores a growing trend led by the Trump Administration: the erosion of multilateralism and the rise of transactional, protectionist trade policy. This moment offers both a warning and a rare opportunity for Africa and Europe – to align their interests, deepen trade ties, and craft a rules-based framework for equitable economic cooperation.

Africa is navigating this terrain with a mix of pragmatism and uncertainty, as countries like Lesotho (50%), Madagascar (47%), Mauritius (40%), South Africa (30%), and Zimbabwe (18%), were slapped with tariffs on April 2, 2025. In a diplomatic gesture, Zimbabwe – currently serving as Chair of the Southern African Development Community (SADC) – suspended all tariffs on U.S. imports. Though unclear, the intention was to preserve the progress made following the Biden Administration’s March 2024 Executive Order, which lifted most U.S. sanctions against Zimbabwean individuals and entities.

Yet this move highlights the deeper fragility of Africa’s trade positioning. Without a coordinated response from organs like SADC or the African Union (AU), such unilateral overtures risk exposing local industries to unfair competition from heavily subsidised U.S. goods and violating the World Trade Organisation (WTO’s) Most Favoured Nation (MFN) principle, unless backed by a credible bilateral agreement. They also weaken the continent’s collective leverage in negotiating more equitable trade terms globally.

Amid this backdrop, the European Union (EU) has a strategic opening act – but must do so with urgency. While the EU has committed to “zero-for-zero” tariffs on industrial goods in response to the U.S. pressure, its broader engagement with Africa remains overly cautious and piecemeal. This hesitation comes at a time when China’s economic and political footprint across Africa is expanding rapidly through initiatives like the Belt and Road, and the BRICS Alliance. If Europe delays any further, the opportunity to build a trade architecture based on democratic values, market openness, and fair rules may be lost to alternative models anchored in state-driven capital, opaque conditionalities, and geopolitical rivalry.

This is particularly concerning as both the U.S. and EU are actively distancing themselves from China in critical sectors such as digital infrastructure, supply chains, and strategic minerals. If Africa is left without meaningful Western alternatives, its growing dependence on Chinese financing and trade may harden into long-term alignment – undermining prospects for deeper Africa-Europe cooperation in the future.

Indeed, Africa and Europe are facing the same storm. Both are victims of erratic tariff policies. Both seek to preserve a rules-based international order. And both stand to benefit from more resilient and diversified trade relationships. What’s needed now is a structured, mutually beneficial partnership grounded in mutual respect and strategic reciprocity.

At the heart of Africa’s long-term strategy is the African Continental Free Trade Area (AfCFTA), which has the potential to raise intra-African trade from 18% to over 50% by 2030. But AfCFTA is more than a continental vision – it’s a platform for external engagement. By developing an “AfCFTA Plus” model, Africa could invite structured partnerships with external blocs like the EU – anchoring trade, investment, and regulatory cooperation in a fair and transparent framework.

Such a pact would go beyond tariff elimination. It would entail investment in digital and physical infrastructure, common standards, mutual market access, and strong dispute resolution mechanisms. It would help African economies industrialise while giving Europe access to fast-growing markets under conditions that support sustainability, governance, and fair competition.

The Friedrich Naumann Foundation for Freedom has long advocated for free markets, international cooperation, and democratic principles. This moment – marked by uncertainty but also unprecedented alignment – is a chance to turn those principles into effective policy. Africa does not need charity. It needs fair rules, equal voice, and trusted partners. Europe, for its part, must decide whether it wants to shape the future of global trade – or simply react to it.

As the U.S. retreats into protectionism and China tightens its grip, Africa and Europe must move together – not just in resistance, but in reconstruction. A liberal, transcontinental trade partnership would be the clearest expression of shared values and strategic foresight. The time to act is not after the 90-day pause. The time to act is now.

Africa’s Moment for Trade Diplomacy – A New Alliance with Europe?

The latest U.S. tariff threats have triggered a wave of uncertainty across African economies already grappling with inflationary pressures, currency volatility, and weak industrial output. Zimbabwe, holding the rotating chair of the Southern African Development Community (SADC), chose to suspend all tariffs on U.S. goods following the April 2nd Washington’s decision to slap an 18% tariff on Zimbabwean exports.

Although no formal responses have come from most African states, the muted reaction signals the absence of a coordinated continental or regional position. Part of the 40% of countries that have reached out to Washington include Lesotho, which was reported to have sent a delegation to the U.S. following a 50% tariff, the highest in Africa. With Zimbabwe at the helm of SADC, the 90-day pause announced by the Trump Administration on April 09, 2025, offers a window to lead diplomatic consolidation – preventing fragmented concessions that may weaken Africa’s long-term leverage.

The risks of inaction are high. Moreover, one-sided liberalisation risks exposing African industries to heavily subsidised imports from the U.S., hastening de-industrialization and deepening Africa’s dependence on raw commodity exports.

This trade turbulence also presents an opportunity: to deepen alliances with like-minded institutions such as the European Union (EU). Germany, a long-standing partner of African development, has both the economic influence and political will to support a new Africa-Europe trade compact. The EU’s commitment to “zero-for-zero” tariffs on industrial goods presents a constructive counterpoint to Trump’s protectionism and aligns with Africa’s aspirations for fairer trade rules.

The moment calls for urgency. If Europe does not act swiftly, the vacuum may be filled by China and Russia, both of which continue to expand their strategic and economic influence across the continent. Africa and Europe now face a shared challenge: building a trade architecture based on reciprocity, not coercion. The 90-day pause should not lull Africa into passivity – it must be used to assert vision, unity, and strategic agency on the global stage.