President Donald Trump’s decision to impose sweeping global tariffs on a range of goods entering the United States may impact not only the economies of well-established countries but also Liberia.
While Trump did not directly impose a tariff on Liberia, his administration’s baseline 10% tariff for all countries, which takes effect on April 5, would directly impact Liberia’s small and medium enterprises that rely on the African Growth and Opportunity Act (AGOA) for preferential access to U.S. markets.
AGOA has been a critical tool in Liberia’s economic recovery and development. Under its provisions, qualified goods from Liberia enter the U.S. market without tariffs, offering Liberian businesses a rare competitive edge in an otherwise challenging global trade environment.
Enterprises such as J-Palm, which exports palm oil-based beauty products, and Atlantic Foods Company, known for its traditional Liberian oils, depend on this access not only to grow but to sustain jobs — many of which are filled by women and youth. A disruption to this preferential treatment could dismantle years of painstaking economic progress.
Looking at trade data, the U.S. had a $147.9 million goods trade surplus with Liberia in 2024 — a 23.6 percent decrease ($45.7 million) from 2023. Meanwhile, U.S. goods imports from Liberia in 2024 were $72.5 million, up 25.5 percent ($14.7 million) from 2023.
If the new U.S. tariffs do not exempt AGOA-eligible goods, the consequences could be severe, leading to significant financial struggles for Liberian businesses due to limited access to a lucrative market. Even if Liberian businesses decide to absorb some of the tariff costs by lowering prices, they are caught in a catch-22 situation that could price them out of the U.S. market altogether.
This situation means Liberian businesses that depend on AGOA are about to be cut off from a critical source of income.
Liberia’s vulnerability is compounded by businesses like J-Palm and Atlantic Foods’ narrow export base and heavy dependence on the U.S. as a trade partner. Unlike larger economies where businesses have diversified trade portfolios, Liberian businesses have fewer alternatives and less negotiating power. Thus, the imposition of the 10% global tariff without exceptions for Liberia, an AGOA country, could reverse years of gains made by Liberian businesses to stay afloat.
AGOA, signed into law by Bill Clinton in 2000, was intended to help African countries grow their economies and create jobs, but these tariffs appear to threaten its future. Economists say the new tariffs mark a clear departure from the more open trade policies that have previously defined the U.S.-Africa relations.
Worse, the tariffs come as small and medium-sized Liberia are grappling with the effects of U.S. foreign aid cuts, especially for those who depended on business incubator grants.
Given these risks, the Government of Liberia must act with urgency. The Ministry of Commerce, in coordination with the Ministry of Foreign Affairs and the Liberian Embassy in Washington, D.C., should immediately engage with the U.S. Trade Representative (USTR) to request a formal exemption for AGOA-covered goods from Liberia. This diplomatic push should be accompanied by robust lobbying efforts, backed by economic data demonstrating the mutual benefits of Liberia-U.S. trade.
Additionally, the government should consult with local exporters and business associations to assess potential impacts and identify contingency measures. These might include exploring alternative markets in the ECOWAS region, diversifying export products, and investing in value-added industries that can better withstand international shocks.
The time for action is now. In a shifting global trade landscape, silence is not an option. Liberia must defend its hard-won position in the U.S. market and safeguard the livelihoods that depend on it.
About the author:
Robin Dopoe is a former reporter, deputy editor, and senior editor at the Daily Observer newspaper.
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