CS Mudavadi Warns of Economic Hardship as US Imposes 10% Tariff on Kenyan Goods
Prime Minister Musalia Mudavadi has warned Kenyans to brace themselves for economic hardships in the wake of the United States' decision to levy a 10% reciprocal tariff on Kenyan imports.
Speaking during the Inaugural Africa Exchange Meeting in Nairobi on Monday, April 7, Mudavadi maintained that the government had to move with speed to address the sectors impacted by Trump's policies.
According to the CS, the measures that the administration in the US is putting in place will become very difficult to undo once they are done.
He urged the government to start thinking of how to effectively fund key sectors that depended on grants and aid from the US
His statements come after Trump issued an executive order last Wednesday imposing a 10% reciprocal duty on all Kenyan exports to the United States.
The new tax effects Kenya's Ksh109.7 billion (USD 784 million) trade with the United States, focusing on major sectors such as textiles, tea, and coffee, which were previously protected under the African Growth and Opportunity Act.
The policy adjustment is projected to lead to lower exports, potential job losses, and lower revenues for local businesses that rely largely on access to the US market.
The order, equally affecting other countries, came less than two months after Trump directed his government to impose fresh tariffs on countries that charge value-added tax (VAT) on US products.
PHOTO BY CS MUSALIA (FACEBOOK)
Tags: DONALD TRUMP Musalia Mudavadi
