By Jones Gadama
The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has welcomed the 90-day pause on reciprocal tariffs announced by US President Donald Trump, describing it as a considerable relief for local exporters.
The pause, which affects 75 countries excluding China, will suspend higher tariffs that would have had a significant impact on Malawi’s agriculture and employment sectors.
MCCCI Chief Executive Officer, Daisy Kambalame, said the halt will provide short-term relief to local exporters who would have struggled with the 17 percent tariff on all Malawian exports to the US. “The pause will give us some breathing space, and we are hopeful that it will be extended or modified to continue supporting our exporters,” Kambalame said.
The US government’s decision to pause tariffs comes amid ongoing negotiations with trade partners, including Mexico, where a one-month pause on tariffs was agreed upon to facilitate discussions.
While the US has not disclosed whether extensions or modifications to the pause will be considered after the 90-day period, the move is seen as a positive development for Malawian exporters.
Impact on Malawi’s Economy
The 17 percent tariff on Malawian exports to the US would have had far-reaching consequences for the country’s economy, particularly in the agriculture and employment sectors.
The agriculture sector is a significant contributor to Malawi’s GDP, and any disruption to exports could have led to job losses and economic instability.
Kambalame emphasized that the MCCCI will continue to work with the government to ensure that the interests of Malawian exporters are protected and promoted.
“We will engage with our stakeholders to explore opportunities for growth and development in the export sector, and we are hopeful that the US government will consider the needs of our country in their trade policies.”
Global Trade Trends
The US government’s pause on tariffs is part of a broader trend in global trade, where countries are re-evaluating their trade policies and seeking to protect their domestic industries.
The solar power industry, for example, is facing significant challenges due to changes in US trade policies, including the expiration of a two-year pause on tariffs for imported solar panels.
The pause on tariffs has provided temporary relief to solar power developers in the US, who have seen a surge in installations in recent months.
However, with the tariffs set to resume, developers are facing uncertainty and pressure to meet the demand for clean energy.
Conclusion
The 90-day pause on reciprocal tariffs announced by the US government has brought relief to Malawian exporters, who would have struggled with the 17 percent tariff on all exports to the US.
While the pause is seen as a positive development, the MCCCI will continue to work with the government to ensure that the interests of Malawian exporters are protected and promoted.
The global trade landscape is complex and dynamic, and countries must navigate these challenges to protect their domestic industries and promote economic growth.
