ANALYSIS ON THE IMPACT OF REMOVING TARRIFS ON GOODS IMPORTED FROM THE UNITED STATES OF AMERICA ON BUSINESS COMPETITIVENESS

The Government removed tariffs on American products entering Zimbabwe in response to the imposition of an 18% reciprocal tariff on Zimbabwe’s exports to the United States of America (USA). The country previously had a 35% tariff on American products.

The suspension of all tariffs levied on goods originating from the United States is intended to facilitate the expansion of American imports within the Zimbabwean market and demonstrates Zimbabwe’s commitment to a framework of equitable trade and enhanced bilateral cooperation.

However, tariff suspension in Zimbabwe, while potentially leading to lower consumer prices and increased trade, could also negatively impact domestic industries and potentially lead to a decline in Government revenue.

The overall trade volume between Zimbabwe and the USA has generally been modest compared to Zimbabwe’s trade with other countries, with South Africa being the biggest trading partner.

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ANALYSIS ON THE IMPACT OF REMOVING TARIFFS ON GOODS IMPORTED FROM THE USA