BY MBONO MDLULI
LOBAMBA – The Kingdom of Eswatini is actively working to address the 10% tariffs imposed by the United States on its exports.
This initiative was highlighted by the Minister of Commerce, Industry and Trade, Manqoba Khumalo, during a statement delivered at the Senate on May 19, 2025. The government is collaborating with other member states of the Southern African Customs Union (SACU) to explore strategies for reducing these tariffs.
Economic Context
Eswatini maintains a significant trade relationship with the U.S., with total trade reaching approximately E1.17 billion. In the 2023/24 financial year, Eswatini’s exports to the U.S. amounted to E384.2 million, while imports from the U.S. were E783.7 million, resulting in a trade surplus for the U.S. of E399.5 million. The primary exports from Eswatini include agricultural and manufactured goods, while imports consist of chemicals, pharmaceuticals, and technical equipment.
Rationale Behind U.S. Tariff Measures
The U.S. has implemented tariffs primarily to:
– Address trade imbalances and promote equitable trade practices.
– Protect domestic industries by encouraging the consumption of U.S.-made goods.
– Ensure economic security by maintaining robust domestic production capacities.
These tariffs can increase costs for imported goods, which may affect consumers and supply chains in Eswatini.
Regional and Bilateral Engagements
Eswatini is advocating for a coordinated regional response to U.S. trade policies, emphasizing the importance of maintaining a unified external tariff structure among SACU members. Recent regional discussions have focused on:
– Preserving the common external tariff.
– Enhancing U.S. imports through non-tariff measures.
– Engaging the U.S. to find amicable solutions to trade concerns.
In bilateral discussions with the U.S. Trade Representative, key outcomes included:
– Commitment to developing proposals to address the trade imbalance.
– Initiatives to promote U.S. exports in sectors like agriculture and technology.
– Advocacy for continued preferential trade arrangements.
Next Steps for Eswatini
To further strengthen trade relations with the U.S., Eswatini plans to:
- Submit comprehensive trade proposals to address economic imbalances.
- Promote U.S. exports through targeted initiatives.
- Advocate for trade preferences to ensure market access for its exports.
- Explore strategic cooperation through capacity-building programs.
By fostering partnerships and engaging stakeholders, Eswatini aims to enhance its economic ties with the United States and mitigate the impacts of tariffs on its trade.
