Africa: Trump Is Punishing Poor Countries Which Export More to the U.S. Than They Import

**Job Losses and Rising Poverty in Developing Countries**

People in developing countries will lose jobs. Poverty levels will rise as well.

US President Donald Trump claims he will stop "cheating" in trade. He plans to implement "reciprocal" tariffs. He says the US will charge half of what other countries do. This reasoning is flawed.

Trump's tariffs punish countries that export more to the US than they import. His formula divides the US trade deficit with a country by its exports to the US, then halves that percentage.

If a country exports more than it imports, it faces higher tariffs. This approach harms economic development in many global South nations.

Since World War II, developing countries have relied on exports for growth. They need foreign exchange to import capital goods like machinery. Targeting large markets like the US has helped small nations achieve economies of scale.

Countries such as Cambodia, Bangladesh, Vietnam, and Lesotho focus on clothing production for the US market. Now they face high "reciprocal tariffs." Lesotho has a 50% tariff—the highest set by Trump—while Cambodia, Vietnam, and Bangladesh face rates of 49%, 46%, and 37%, respectively.

Trump believes these tariffs will encourage countries to buy more American goods. However, how can developing nations afford these goods? Trump's policies undermine their current growth strategies.

As a result, these countries may stop exporting to the US altogether. Manufacturing growth could stall, leading to job losses and increased poverty.

Trump hopes factories will move back to the US due to his tariffs. Some investors might make this choice but likely in higher-tech sectors only. Labour-intensive industries may relocate less frequently because wages are higher in the US.

This shift would raise clothing costs for consumers, impacting many working-class voters who support Trump. Currently, some supporters cheer for Trump's 25% tariff on imported vehicles, hoping it leads to job growth despite potential price increases for basic goods.