By Abdul Bero Kamara- Chief
11th April 2025
Since President Trump took office three months ago, he has initiated a trade war with global trading partners by imposing tariffs ranging from 10% to over 50% on imported goods into the United States.
Interestingly, even close allies like Canada and EU countries were not spared. While these nations, including China, have retaliated by imposing equal or even higher tariffs on US exports.
Since President Trump’s tariff came into effect on April 9, the SLPP government of President Bio has not reacted like other countries have done given that this 10% tariff has the potential to ultimately harm the struggling Sierra Leone economy.
What are Sierra Leone’s Exports to the US?
Sierra Leone primarily exports diamonds, cocoa, coffee, iron ore, titanium ore, fish, palm oil, and other agricultural products to the US.
Previously, Sierra Leone was eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA). In 2024, the total goods trade between the two countries was valued at $148.6 million, with the US enjoying a trade surplus of $91.1 million. ( data from Invest Sierra Leone)
Now let’s crunch the numbers to better understand the economic impact on Sierra Leone’s economy due to a 10% tariff on its exports to the US.
Sierra Leone’s Trade with the US:
– Export Value: Sierra Leone’s exports to the US are valued at $27 million. (This figure is derived from the calculation of 10% of Sierra Leone’s GDP of $7.41 billion.)( data from OEC world )
– Tariff Rate: A 10% tariff would increase the cost of these exports by $2.7 million.
Impact on GDP
– Tariff Cost as a Percentage of GDP: The $2.7 million tariff cost would represent approximately 0.036% of Sierra Leone’s GDP ($7.41 billion) ( data from
How would this Impact the Sierra Leone Economy?
A 10% US tariff on Sierra Leone’s exports would likely negatively impact the country’s GDP, as Sierra Leone’s economy heavily relies on exports, particularly from the mining and agricultural sectors.
The increased tariffs would make Sierra Leone’s exports more expensive for US consumers, potentially leading to a decrease in demand and a subsequent decline in exports.
Further, any decrease in exports could have a ripple effect throughout Sierra Leone’s economy, affecting various sectors such as employment, investment, and government revenue. As a result, the country’s GDP could contract, exacerbating poverty and inequality.
Trade Imbalance:
Sierra Leone has a trade deficit with the US, meaning it imports more from the US than it exports. A 10% tariff on Sierra Leone’s exports to the US could worsen this imbalance, further harming the economy.
US Exports to Sierra Leone
The main products exported from the United States to Sierra Leone include cars ($26 million), plastic housewares ($24.1 million), and poultry meat ($10.7 million).
Over the last five years, US exports to Sierra Leone have increased at an annualized rate of 1.56%, rising from $86.6 million in 2018 to $93.6 million in 2023.
What Should the SLPP government do?
While Sierra Leone’s economy cannot be compared to that of the US, they are both trading partners. Given that other countries are retaliating against US tariffs, thus Sierra Leone, lacking the economic strength to challenge the US directly, should engage with the US government to negotiate better trade agreements.
Finally, it would be prudent to explore alternative markets that serve the best interests of the country.
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