African countries largely insulated from direct impact of US tariffs – Fitch Ratings

Fitch Ratings says African countries are largely shielded from the direct effects of US President Donald Trump’s proposed “reciprocal” tariffs, owing to the continent’s relatively low exports of manufactured goods to the United States.

The rating agency noted on Thursday that while the tariffs—briefly implemented before a 90-day suspension—may not hit African economies directly, they could still feel the pinch indirectly through weakened global demand and falling prices for key commodities such as oil, a crucial export for many African nations.

Fitch also highlighted the adverse effects of Trump’s aid freeze, warning it had significantly reduced financial support to the continent and would have a negative impact.

Despite these challenges, the agency said African economies were better equipped to handle such external shocks, thanks to improved fundamentals including lower debt ratios and more flexible exchange rates.

Meanwhile, base metal markets showed volatility amid trade war concerns. Copper prices dipped slightly on Friday morning after rebounding on Thursday, following Trump’s tariff pause and softer-than-expected US inflation data.

Copper, aluminium, and zinc all gained ground on Thursday, but concerns persist over weak demand, particularly from China’s troubled property sector.

Trump has acknowledged that the 145 percent tariffs imposed on China could cause short-term disruptions but expressed confidence in their long-term benefits to the US economy.

Overall, copper has fallen over 11 percent since late March. On Friday morning, it slipped another 0.3 percent, while aluminum and iron ore also declined, with the latter down 1.8 percent at the time of reporting.

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