US President Donald Trump continues to disrupt the global economy with his aggressive tariff policies.
His latest move—a 25 percent tariff on all imported vehicles into the US starting April 2—has sparked a worldwide backlash, particularly given the fragile state of the global economy following previous trade wars.
This tariff has not been well received by America's traditional allies, who are among the biggest casualties. Analysts also view it as an attempt to weaken China’s leadership in the electric vehicle (EV) industry.
Countries affected by the tariff have vowed to retaliate. Canadian Prime Minister Mark Carney described the tariffs as "unjustified," while Japanese Prime Minister Shigeru Ishiba and European Commission President Ursula von der Leyen warned of negative consequences for the global economy.
China asserted that the tariffs "will not help the US solve its own problems" and emphasised that economic growth cannot be achieved through protectionist policies.
This escalation risks turning into a prolonged trade war, with ripple effects felt even in developing nations, including Kenya. Historically, tariffs benefit no one, as they lead to rising prices for consumers on all sides.
For Kenya, this 25 percent tariff is likely to drive up vehicle prices, disrupt supply chains, and reduce trade opportunities. The country heavily relies on imports from Japan, Germany, the UK, and China.
If manufacturers in these regions face increased production costs due to the tariffs, they could pass these expenses on to secondary markets like Kenya. With vehicle affordability already a challenge, this will further strain consumers.
Trump claims the tariffs will increase revenue from foreign entities, but this is misleading. Tariffs are paid by importers, not exporters, meaning higher costs are ultimately passed down to businesses and consumers.
The US is no longer a dominant buyer of global goods, making it unlikely to receive significant price reductions from alternative markets.
Some may believe that since the tariffs primarily target large economies, Kenya and other African nations will be unaffected.
However, global trade is deeply interconnected. Even minor disruptions in supply chains can have far-reaching effects. Kenya’s export-driven economy is particularly vulnerable, as both China and the European Union are key trading partners.
The writer is a journalist and communications consultant.
