Africa-Press – Malawi. The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has warned that the recent implementation of reciprocal tariffs by the United States (US) could trigger a global economic recession.
The chamber fears what it calls significant implications on Malawi’s economy.
On April 2, 2025, the US announced a 10 percent baseline tariff on imports from all countries, effective April 5, 2025, alongside country-specific tariffs based on bilateral trade deficits.
Malawi now faces a 17 percent tariff on its exports to the US, reflecting the 34 percent tax Malawi imposes on American imports.
Data from the International Trade Centre Trade Map show that exports to the US have steadily declined from $57.2 million in 2022 to $47.2 million in 2023, dropping further to $43 million in 2024.
Malawi’s key exports to the US include tobacco, coffee, tea and sugar.
Meanwhile, imports from the US have fluctuated, recorded at $36.5 million in 2022 before dipping to $18.2 million in 2023, and rebounding to $26.9 million in 2024.
Major imports from the US include electrical machinery, nuclear reactors and mechanical appliances.
KAMBALAMEIn an interview on Wednesday, MCCCI Chief Executive Officer Daisy Kambalame expressed concern over potential economic disruptions caused by these tariffs.
“The rise in tariffs will result in price increases, likely causing demand from the US to fall. This poses a serious threat to Malawi’s export revenues and trade balance.
“Malawian farmers, manufacturers, exporters and service providers who rely heavily on the US market could suffer significant losses,” Kambalame said.
She said the impact could extend to employment in key sectors such as agriculture and manufacturing.
Kambalame added that Malawian businesses might face higher costs for raw materials and equipment imported from the US due to reciprocal tariffs.
Economics Association of Malawi President Bertha Chikadza warned that Malawi could lose export competitiveness if other countries responded by lowering their tariffs on US goods and services.
“If the US imports from Malawi were to be reduced by 20 percent due to the tariffs, this could reduce Malawi’s export earnings by less than 1 percent, which could still significantly impact the country’s economy.
“In response, Malawi must mitigate these effects by increasing value addition to enhance the quality and appeal of its exports and diversifying its export markets by taking advantage of regional trading blocs such as AfCFTA,” Chikadza said.
Business analyst Ferdinand Mchacha said Malawi’s main exports to the US were under threat, necessitating urgent action to find alternative markets while negotiating with the US government.
When contacted, Minister of Trade and Industry Vitumbiko Mumba said in a WhatsApp response: “We will make a statement at an appropriate time.”
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