Angola: US tariffs will have minimal impact on country – economist

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Angola: US tariffs will have minimal impact on country – economist

9:07 CAT | 08 Apr 2025

File photo: Lusa

Angolan economist Flávio Inocêncio told Lusa on Friday that the tariffs announced by the United States this week will have a ‘minimal impact’ on Angola, given that its main export, oil, will remain unchanged.

“Angolan exports depend very little on the United States. What Angola exports most to that country is oil, worth around US$700 million [€633 million], and even there it is exempt,” said the Angolan economist. Speaking to Lusa from Luanda,

Flávio Inocêncio recognised that if this African country “had a more diversified economy, the impact would be different,” but this is perhaps one of the few cases in which the strong impact of oil on the Angolan economy is an advantage.

According to the most recent official figures cited by the economist, Angola exported US$783.7 million (€708 million) in oil to the United States, far below the more than US$16 billion, equivalent to almost €14.5 billion, exported to China, Angola’s main trading partner.

“The US was the biggest customer for Angolan oil 20 years ago, but the map has changed completely, today almost everything goes to Asia,” said the economist, pointing out that purchases made by the US represent US$2 billion (1.8 billion euros), far below the US$20 billion (18 billion euros) in products and services bought by China and the US$17 to 18 billion ( €15.3 to €16.2 billion) imported by the European Union (EU).

The new rules presented at the beginning of last week by Donald Trump increase the tariffs on Angolan products to 32%, compared to the average customs rate of 11%, “but as Angola has not increased its customs tariff, the new tariffs have no impact on Angolan products sold to the US,” said Flávio Inocêncio.

In addition to Angola, the other members of the Community of Portuguese Language Countries (CPLP) covered by the measure announced by the US President will see tariffs of 16% in Mozambique and 13% in Guinea-Bissau, with the rest (Brazil, Guinea-Bissau, São Tomé and Príncipe, Cabo Verde and Timor-Leste) facing tariffs of 10%, while Portugal is included in those on the EU.

On Wednesday, US President Donald Trump announced new US tariffs of 20% on products imported from the EU, in addition to the 25% tariffs on the automobile, steel and aluminium sectors.

Trump’s new tariffs are an attempt to grow US industry while punishing countries for what he said were years of unfair trade practices.

Source: Lusa