Donald Trump’s New Tariffs: A Setback for Algerian Trade and Economy

The latest protectionist measures introduced by US President Donald Trump, which impose higher tariffs on products imported into the United States, are causing significant repercussions for international trade. Algeria, the fifth-largest supplier of goods to the US from Africa, will face a tariff increase from 18.9% to 30%, potentially affecting its foreign exchange earnings.

In his recent address, President Donald Trump framed the new tariffs as part of his plan to reclaim "economic independence" for the US. The tariffs will range from 10% for some countries to as high as 34% for China. For Algeria, the tariff increase of 11.1 percentage points has raised concerns within the country’s trade sector, already fragile from previous economic challenges.

Tariff Breakdown:

• Algeria: 30% (up from 18.9%)

• Libya: 31%

• Tunisia: 28%

• Morocco: 10%

• China: 34%

• European Union: 20%

• India: 26%

In the Maghreb region, only Libya faces higher tariffs than Algeria. This change is expected to impact Algerian exports, which play a crucial role in the nation's economy. In 2024, trade between Algeria and the United States was valued at $3.5 billion, with a noticeable decline in Algerian exports to the US, down by 18.7%.

Economic Impact:

The increased tariffs are anticipated to decrease the competitiveness of Algerian products in the US market, leading to reduced exports. This will likely result in lower foreign exchange earnings, which are essential for Algeria’s economy. The new taxes could also increase trade tensions, prompting Algeria to seek alternative economic partnerships to offset the effects of these tariffs.

While the US’s protectionist stance has shaken global trade, Algeria may find this moment as an opportunity to reassess its trade strategies. Expanding market diversification towards Asia and Africa, while strengthening ties with the European Union, could help reduce the reliance on the US market and mitigate the adverse impacts of the new tariffs.