US-Rwanda Trade Tensions: Trump suspends duty-free policy for Rwanda's clothing exports

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Europe

01:29

US President Donald Trump has stopped Rwanda from exporting clothing to the US - duty free. The move is the latest in a trade dispute between the Trump administration and one of Africa's poorest nations. Kevin McAleese reports from Washington.

KEVIN MCALEESE WASHINGTON It was Rwanda's turn to feel the sting of Donald Trump's wide-ranging trade polices. The suspension of the duty-free allowance will hit approximately 1.5 million dollars worth of clothes from Rwanda - some 3 percent of the country's total exports to the US.

US Trade Representative C.J. Mahoney said the measure was regrettable but defended the shift as "measured and proportional".

This is the latest salvo in a trade dispute between the two that dates back to 2016 when Rwanda upped import taxes on second-hand clothing from the US in a bid to bolster local-clothing production.

Earlier this year the US warned Rwanda to roll back the tariffs or risk its duty-free export status.

However, in the same statement, Mahoney said Trump's action wouldn't harm other benefits under the African Growth and Opportunity Act which allows tariff-free exports to the US.

The Trump administration's move against Rwanda has raised questions over what the roll-out of his protectionist trade agenda could mean for other countries on the continent.