PS Trade Regina Ombam Engages Parliament on Impact of US Tariffs on Trade

Principal Secretary for Trade, Regina Ombam, appeared before the Parliamentary Committee on Regional Integration, chaired by Hon. Irene Mayaka to address the implications of the new US tariffs on trade and investment.

The talks centered on the new tariffs introduced by the US administration and their potential impact on trade and investment between the EAC and US; and intra-regional trade.

In April, the United States imposed a 10% baseline tariff on imports from several countries, including Kenya. While the implementation of these tariffs has been paused for 90 days, effective April 10 with the deferment set to expire on July 9 it's crucial for the region to prepare and strategize for the future of its trade and investment relations with the US.

PS Ombam emphasized that these new tariffs will significantly affect Kenya and other East African Community (EAC) Partner States, particularly impacting the competitiveness of vital export sectors such as textiles and apparels that provide employment to thousands of persons.

Despite the challenges, the PS also highlighted that the imposition of these tariffs presents an opportunity for EAC partner states to foster more predictable trade engagements with the US and to boost intra-EAC trade. This can be achieved through value addition in key sectors like agriculture, textiles, and manufacturing.

To mitigate the effects of the new tariffs, PS Ombam outlined key initiatives being undertaken by State Department for Trade, including consultations with the industry players, the EAC partner states and bilateral discussions with the US government.