ADDIS ABABA – The newly imposed 10% U.S. tariffs on Ethiopian goods could be a game-changer for the country’s manufacturing sector, particularly in clothing production, according to prominent economist Zemedeneh Negatu.
In a statement shared on his official X account, Zemedeneh highlighted that the new U.S. tariff regime—part of a broader global trade shift—could give African manufacturing hubs like Ethiopia a major competitive edge. While Asian exporters face tariffs of up to 47%, Ethiopian exports to the U.S. are only subject to a 10% tariff, making the country’s products significantly more cost-effective.
“We are already producing world-class, high-quality clothing for European and other markets,” Zemedeneh stated. “Now, with the U.S. tariffs on Ethiopian goods set at just 10%, we have a unique window to enter the American market with high-quality, affordable fashion.”
The economist also emphasized that this shift in U.S. trade policy, driven by President Trump’s broader realignment of the global trading system, is something political leaders and businesses around the world must quickly adapt to.
“Globalization is being rewritten,” he said. “The U.S. imported 97% of its clothing in 2024, so there’s massive demand—and Ethiopia is well-positioned to help meet it.”
Echoing Zemedeneh’s optimism, the Industrial Parks Development Corporation (IPDC) stated that Ethiopia is ready to seize the opportunity created by this favorable tariff structure.
“With only a 10% tariff on Ethiopian exports, we have a clear advantage over key manufacturing nations like Vietnam and Bangladesh,” the IPDC noted. “This opens the door for greater investment, job creation, and industrial growth within Ethiopia.”
Experts believe this could be a pivotal moment for Ethiopia’s industrial sector, particularly its textile and garment manufacturing, which has seen increasing foreign investment and capacity building in recent years.
As global trade dynamics continue to evolve, Ethiopia may find itself on the fast track to becoming a major player in international apparel exports, especially to the lucrative U.S. market.
BY MESERET BEHALU
THE ETHIOPIAN HERALD SATURDAY 5 APRIL 2025
