Zim-US tariff talks risk collapse

PHILLIMON MHLANGA

The United States has warned that Zimbabwe’s push to secure lower tariffs on its exports could be derailed by time constraints, despite a temporary reprieve granted by President Donald Trump’s administration.
On April 9, President Trump announced a 90-day suspension of select reciprocal tariffs affecting dozens of countries, including Zimbabwe. 

The move followed Zimbabwe’s formal approach to Washington to establish a more balanced trade arrangement. 

However, a baseline 10% tariff introduced on April 5 remains in force across the board, including on Zimbabwean goods.

US Ambassador to Zimbabwe Pamela Tremont this week  told Business Times, a market leader in business, financial and economic reportage,  that the biggest hurdle in the negotiations is the limited window available to strike a deal, underscoring concerns that the 90-day suspension of the 18% tariff may lapse before an agreement is concluded.
“We’re still having conversations,” Ambassador Tremont told Business Times. 

“But the biggest problem is the timeline to negotiate tariffs.”

The talks were triggered after Zimbabwe submitted a formal proposal to reduce trade barriers with the US. 

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube led the diplomatic effort during the recent IMF and World Bank Spring Meetings in Washington, where he lobbied top officials from the US Treasury and Capitol Hill.

In response, the Trump administration granted the 90-day pause to allow room for dialogue. But now, with the clock ticking, that narrow timeframe is emerging as a key stumbling block.
“Unfortunately, because we have negotiations with so many countries, I think that 90 days will probably expire before we come to an agreement with Zimbabwe,” Tremont warned. “Anyone familiar with trade negotiations knows they don’t happen overnight.”

She added: “And when you are trying to negotiate with more than 120 countries simultaneously, there’s inevitably going to be a problem.”

A central point of contention is Zimbabwe’s own tariff regime. Ambassador Tremont highlighted the country’s steep import duties, particularly on vehicles, as a sticking point.
“To import a vehicle here can cost up to 60% on top of the purchase price,” she said. “So by that standard, even 18% on Zimbabwe’s exports to the US could be seen as quite generous.”

The US has historically maintained one of the world’s most open economies, often extending preferential access to developing countries without demanding equivalent treatment for American exports. 

That dynamic is shifting under President Trump’s “America First” trade recalibration strategy.
“Well, the US has offered generous access to its markets for decades,” Tremont said.’

For Zimbabwe, a breakthrough in these talks could provide critical relief for its struggling export sector and bring much-needed foreign currency into the economy. But with just weeks remaining, the window of opportunity is closing fast.

Despite the urgency, Washington is cautious about rushing the process.
“We’re open to discussions with all countries on how to find a more balanced trade framework,” Tremont said. 

“But this is a complex issue, and we need time to assess each country’s position thoroughly.”
She added: “We’re all in a hurry to make this happen as quickly as possible. But there’s a long line of countries that have made offers, and it’s going to take time for us to get to all of them.”

As the 90-day countdown nears its end, both Harare and Washington are under mounting pressure to secure a deal—or risk losing momentum altogether.

The ambassador added that the US will continue to support Zimbabwe’s health and humanitarian projects.
“The US has US$223m for health and humanitarian programmes for this year,” she said.

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