Trump’s Tariff Policy… Sudan Not Influencial
Sudanhorizon – Nazik Shamam
With his economic policy, US President-elect Donald Trump has written a new chapter in world economic history by imposing tariffs on countries that import goods from his country.
Last week, US President Donald Trump announced the imposition of new, broad tariffs on goods imported worldwide.
Trump stated that the 10 percent basic tariff imposed on all countries, in addition to higher rates for some countries, will strengthen the value of the US economy and protect jobs.
Sudan on the List
US President Trump did not exclude any country from his policies, which he directed directly at China, commenting explicitly, “I think something positive will come out of this.”
Sudan is among the countries required to pay tariffs on exports entering the US market.
Washington relies on Gum Arabic as the primary export in most food, pharmaceutical, and cosmetic industries.
Difficulty in Predicting the Effects
Regarding the impact of the US President’s decision on US exports, Ahmed Al-Anan, head of the Sudanese Gum Arabic Exporters Division, believes it is difficult to predict the lasting effects of US tariffs on at least 180 countries and islands, given that each country seeks to open a dialogue with the US.
In an interview with the Sudanhorizon news website, Al-Anan said that what is significant is that Sudan is on the list of the lowest tariffs imposed by the United States, which is estimated at around 10%.
Al-Anan added, “This means that it is an opportunity for Sudan to move and receive industries from countries with higher tariffs to establish themselves in Sudan and gain the advantage of the lower tariff.”
In the field of exports, he emphasized that exports from Sudan become less expensive and more competitive than re-exports from European countries.
He continued, “In the field of gum Arabic, American companies can be encouraged to import directly from Sudan instead of European countries, which used to re-export 90% of their exports to the rest of the world.” He pointed out the possibility of circumventing European companies by shipping their customers’ orders directly from Sudan instead of sending them to Europe for re-export. Western companies could also be forced to relocate part of their factories to Sudan for direct export, “which is very dangerous,” he said.
Al-Anan believes that Sudanese export companies will become like local traders, selling to Western factories within Sudan or buying directly from the producer, with which they will be unable to compete.
Ahmed Al-Anan stressed the importance of the state’s attention to this matter and the prohibition of investments in goods with a preferential advantage; otherwise, foreign exchange earnings will be lost.
Searching for Alternative Markets
For his part, economic expert Dr. Haitham Mohamed Fathi said that Sudan’s exports to the United States do not represent a significant portion of Sudan’s total exports.
He added, “Sudan must look for alternative markets for our products (despite their small number), and therefore I doubt that this decision will have an impact on the Sudanese economy.”
In his interview with Sudanhorizon, Fathi noted that Sudan is currently experiencing significant difficulties in increasing its foreign currency resources, which is impacting external financial balances and the Central Bank’s foreign currency reserves.
The economic expert described the impact of US tariffs on the Sudanese economy as minimal, considering they are the lowest of the rates announced by Trump, given the 28 percent tariff on Tunisia, 30 percent on Algeria, and 31 percent on Libya, while Sudan has a 10 percent tariff.
Fathi indicated that the actual impact of these tariffs will be very limited, given that Sudan does not export large quantities to the US market. Therefore, “the impact on the Sudanese economy will be slight, if not nonexistent.”
Weak Impact
Economic analyst Dr. Muhammad al-Nayyar agrees with Fathi, regarding the weak impact of the US president’s decision on Sudanese exports.
Al-Nayyar told Sudanhorizon that the impact will be weak, if not nonexistent, due to the weak trade exchange between the US and Sudan. He added, “The weakness of Sudanese exports to the US, due to the embargo imposed on it for more than twenty years, was enough to weaken the entry of Sudanese exports into the US market.” He continued, “The only exception is gum Arabic, which enters the US market indirectly.”
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