EAN raises alarm over US tariffs
The Economic Association of Namibia (EAN) has expressed deep concern over the recent imposition of a 21% tariff on Namibian exports to the United States, warning that the decision could have consequences for key sectors of the economy.
Namibia will now pay a reciprocal duty of 21% as part of the hike in import duties imposed by the United States (US) on all trading partners.
The tariff, introduced by the former US administration under President Donald Trump, affects major Namibian exports such as grapes, fish, uranium, and diamond institutions that support jobs and contribute to the country’s Gross Domestic Product (GDP).
“By making our exports more expensive in the U.S. market, the tariffs threaten to reduce demand for Namibian products, leading to decreased export revenues.” said the executive director of the EAN, Cons Karamata.
He also said that this could place pressure on Namibia’s foreign exchange reserves at a time when economic resilience is critical.
Karamata further noted that the impact of these tariffs would not only be felt by businesses but also by ordinary Namibians whose livelihoods depend on the affected industries.
In response, the EAN has proposed a multi-pronged strategy aimed at reducing the impact of the tariffs and ensuring the long-term sustainability of Namibia’s economy.
Central to this plan is diplomatic engagement with US authorities, particularly through the Southern African Customs Union (SACU) and frameworks like the African Growth and Opportunity Act (AGOA).
“First and foremost, we urge immediate diplomatic engagement with U.S. authorities, through the Southern African Customs Union arrangement, to seek exemptions or reduced tariffs, potentially through existing frameworks,” Karamata said.
Additionally, the EAN spoke on the need to diversify Namibia’s export markets by strengthening trade relationships with the European Union, China, Russia, and regional African markets under the African Continental Free Trade Area (AfCFTA).
Karamata said that Namibia should process and package products locally for value-added processing of raw materials to boost export competitiveness, from beef and fish to uranium, “This would allow Namibia to command higher prices in international markets," he added.
To support exporters in the short term, the EAN recommended temporary tax relief measures or subsidies while encouraging greater domestic consumption of locally produced goods.
Karamata said that while these tariffs present a challenge, they also offer an opportunity to reassess and strengthen Namibia's trade relationships. “By diversifying our markets, adding value to our exports, and fostering greater regional integration, we can transform this dispute into a catalyst for more sustainable economic growth” He said.
Namibia will now pay a reciprocal duty of 21% as part of the hike in import duties imposed by the United States (US) on all trading partners.
The tariff, introduced by the former US administration under President Donald Trump, affects major Namibian exports such as grapes, fish, uranium, and diamond institutions that support jobs and contribute to the country’s Gross Domestic Product (GDP).
“By making our exports more expensive in the U.S. market, the tariffs threaten to reduce demand for Namibian products, leading to decreased export revenues.” said the executive director of the EAN, Cons Karamata.
He also said that this could place pressure on Namibia’s foreign exchange reserves at a time when economic resilience is critical.
Karamata further noted that the impact of these tariffs would not only be felt by businesses but also by ordinary Namibians whose livelihoods depend on the affected industries.
In response, the EAN has proposed a multi-pronged strategy aimed at reducing the impact of the tariffs and ensuring the long-term sustainability of Namibia’s economy.
Central to this plan is diplomatic engagement with US authorities, particularly through the Southern African Customs Union (SACU) and frameworks like the African Growth and Opportunity Act (AGOA).
“First and foremost, we urge immediate diplomatic engagement with U.S. authorities, through the Southern African Customs Union arrangement, to seek exemptions or reduced tariffs, potentially through existing frameworks,” Karamata said.
Additionally, the EAN spoke on the need to diversify Namibia’s export markets by strengthening trade relationships with the European Union, China, Russia, and regional African markets under the African Continental Free Trade Area (AfCFTA).
Karamata said that Namibia should process and package products locally for value-added processing of raw materials to boost export competitiveness, from beef and fish to uranium, “This would allow Namibia to command higher prices in international markets," he added.
To support exporters in the short term, the EAN recommended temporary tax relief measures or subsidies while encouraging greater domestic consumption of locally produced goods.
Karamata said that while these tariffs present a challenge, they also offer an opportunity to reassess and strengthen Namibia's trade relationships. “By diversifying our markets, adding value to our exports, and fostering greater regional integration, we can transform this dispute into a catalyst for more sustainable economic growth” He said.
