Ethiopia: U.S. Tariff Structure Offers Ethiopia Edge in Global Export Market
· Investor confidence rebounds as firms return to Ethiopia
Ethiopia is poised to capitalize on a unique window of opportunity in the global export market as the 10% tariff imposed by the U.S. government on Ethiopian goods.
This is because the measure offers a competitive advantage over higher tariffs levied on other nations, according to the Addis Ababa Industry Development Bureau.
In an exclusive interview with The Ethiopian Herald, the Bureau ‘s Manufacturing Industry Sector Head Paulos Kussa said that despite recent U.S. tariffs ranging from 10% to 49% on a wide range of imports, Ethiopia’s relatively low tariff rate places its export sector in a favorable position–particularly for key products like coffee, leather, flowers, and textiles.
“This is a golden opportunity for Ethiopian exporters. The comparatively lower tariff enhances our competitiveness in the U.S. market, especially at a time when many global suppliers are facing steeper trade barriers,” Paulos explained.
He added that the Ethiopian government is focusing on maximizing this advantage by strengthening the manufacturing industry and boosting production capacity. The goal is to ensure local manufacturers can meet both quality and quantity demands for international markets, particularly the U.S. and Europe.
According to Paulos, the favorable tariff policy is already beginning to reverse the investment outflow that followed Ethiopia’s suspension from the African Growth and Opportunity Act (AGOA). Investors who had relocated to neighboring countries are now returning, drawn by the low tariff regime and the government’s renewed commitment to industrial growth.
“Several manufacturers who previously shifted operations abroad are coming back. They recognize the cost-effectiveness and market potential that Ethiopia now offers under the current U.S. tariff structure,” he said.
Addis Ababa’s manufacturing sector is showing signs of revival. The city currently hosts 207 industries exporting to international markets, while 1,996 industries focus on import substitution, reducing dependency on foreign goods. In addition, 131 new industries have recently launched operations in the capital, contributing to job creation and economic diversification.
“The city’s industrial output is growing, and production capacity is improving steadily. With targeted support and incentives, we can scale this momentum and build a strong, export-driven manufacturing base,” Paulos noted.
The Bureau emphasized the need for manufacturers to enhance operational efficiency, adopt modern technologies, and maintain high product standards to stay competitive in global markets.
As global trade dynamics shift, Ethiopia’s strategic response–leveraging favorable tariffs and re-engaging international investors–could pave the way for a more resilient, export-oriented economy.
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