The United States government has introduced a 10% tariff on all Kenyan exports entering the country, a retaliatory measure announced on Thursday in response to Kenya’s imposition of a 16% value-added tax (VAT) on American goods.
The move marks a significant escalation in trade tensions between the two nations, with U.S. officials signalling that the tariff will remain in place until Kenya agrees to negotiate the removal of its VAT with President Donald Trump.
The U.S. Trade Representative’s office stated that the tariff, effective immediately, aims to address what it calls “unfair trade practices” by Kenya, accusing the East African nation of disproportionately taxing American imports.
Kenyan exports, including coffee, tea, and textiles, which amounted to over $600 million in trade with the U.S. last year, are expected to take a significant hit as a result.
Kenya’s Ministry of Trade defended its 16% VAT, implemented earlier this year, as a necessary step to bolster domestic revenue and level the playing field for local producers.
However, U.S. officials argue that the tax unfairly targets American businesses, prompting the swift countermeasure.
In a statement, U.S. Trade Representative Katherine Tai said, “We are open to dialogue, but Kenya must come to the table and address this imbalance. President Trump has made it clear that America will not tolerate one-sided trade policies.”
The White House echoed this sentiment, emphasising that the tariff could be lifted if Kenya engages in direct talks with the president to reverse its VAT policy.
Kenyan officials have yet to respond formally to the U.S. tariff announcement, though analysts predict a potential standoff as Nairobi weighs its next move.
Economists warn that the tie-for-tat measures could disrupt a previously stable trade relationship, with ripple effects felt across East African markets.
The development comes amid broader efforts by the Trump administration to renegotiate trade deals globally, prioritising what it describes as “reciprocal and fair” economic partnerships.
