Will the removal of US tariffs hurt Zimbabwean economy?

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Zimbabwean economists and analysts have expressed concerns over their government’s decision to remove tariffs on American products entering the country.

The experts have warned that this decision could harm the Zimbabwean economy.

The Zimbabwean president, Emmerson Mnangagwa, recently announced that his government will remove all tariffs levied on United States products. In a post on X, Mnangagwa stated that this action underscored Zimbabwe’s commitment to a framework of equitable trade. This aimed to enable the expansion of American products within the local industry.

Does this affect the Zimbabwean Economy?

Mnangagwa’s decision came after United States President Donald Trump imposed an 18% reciprocal tariff on Zimbabwe in response to the country’s 35% tariff on American products. However, economists believe that this decision will have a significant impact on the Zimbabwean economy.

Former Zimbabwe Finance Minister Tendai Biti has described this move as a “huge betrayal” to the Zimbabwean economy. “The response to US-imposed tariffs or any other external threat to the region cannot be unilateral, opportunistic and ill thought, he posted on X.

“Zimbabwe, particularly in its capacity as SADC chair, had a duty of leading a regional response anchored on values, research and pan African interest. The region has solidly stood with the regime in Harare for years and the same owes a duty of care to the region. The region faces serious geopolitical threats, including the war in the DRC and the threat of global war. Unilateralism is myopic, selfish, and suicidal. It is a huge betrayal,”.

Risks to local industry and trade balance

Some economists believe that the decision will affect the Zimbabwean economy in terms of local industry and international trade balance.

Economist Vince Musewe told News Day that it is a bad move to make imported goods cheaper than locally produced goods. “This effectively destroys any chance of local industrialisation as imports become cheaper than producing them locally, unless we import technology to produce locally and not finished products,” he said.