THE Zimbabwe Revenue Authority (Zimra) is awaiting guidance from the Treasury on how the tariff exemption on either goods imported from or manufactured in the United States will be rolled out, NewsDay Business can reveal.
President Emmerson Mnangagwa at the weekend directed the government to suspend all tariffs levied on goods originating from the United States, a measure he said was intended to facilitate the expansion of American imports within the Zimbabwean market.
Mnangagwa’s decision came after his United States counterpart Donald Trump imposed an 18% reciprocal tariff on Zimbabwe in response to the country’s 35% tariff on American products.
The move by Trump was part of a wider move against all countries it trades with.
However, the importers are waiting to hear when this new measure will be rolled out and whether the exemption will apply to just goods made in the United States or to any imports from that country.
“The announcement is still at very high policy levels. The implementation will be rolled out once the principal ministry has given implementation guidance to enable the implementers to develop the legislative and administrative modalities,” Zimra told NewsDay Business in response to a query on the matter.
“The implementation modalities will specify the qualifying goods, the origin criteria, quotas, the extent of tariff exemption for each class of goods and any other issues for effective implementation.”
Zimra’s principal ministry is the Finance, Economic Development and Investment Promotion ministry.
- Letter from America: Is former president Donald Trump a hero or villain?
- Chidzivo, Tarakinyu clinch Kabag honours
- Letter from America: Is former president Donald Trump a hero or villain?
- The Fiddler: Is honesty the best policy?
Keep Reading
As previously reported by NewsDay Business, the United States is a major export destination for local goods, which totalled US$48,15 million last year, a monthly average of US$4,01 million, according to the Zimbabwe National Statistics Agency.
Hence, Mnangagwa’s pronouncement is meant to curtail potential impacts on this export revenue from the 18% tariff.
According to the same agency, the United States did not feature in the top 20 import sources for Zimbabwe.
However, looking at statistics from the Office of the United States Trade Representative, from the US Executive Office to the President, total goods traded with Zimbabwe were US$111,6 million in 2024.
US goods exported to Zimbabwe in 2024 were US$43,8 million, up 10,6% from the prior year. Meanwhile, US goods imported from Zimbabwe in 2024 were US$67,8 million, down 41% from 2023.
Consequently, the US goods trade deficit with Zimbabwe was US$24,1 million last year, a 68,1% decrease over 2023.
“President Mnangagwa’s directive to suspend all tariffs on US goods, in response to Washington’s 18% tariff on Zimbabwean exports, is a diplomatic manoeuvre that seeks to maintain open channels with the US following its March 4, 2024 Executive Order,” Zimbabwe National Chamber of Commerce president Tapiwa Karoro said.
“While it signals goodwill and a desire to preserve improving relations, the move raises complex economic and strategic issues. For local industry, zero-duty access for U.S. goods may exacerbate competitive pressures.
“Zimbabwean manufacturers — already facing high costs of production, limited access to finance, and infrastructural bottlenecks — could be squeezed further by cheaper, subsidised imports from the US”
He said without counterbalancing support measures like tax relief or industrial incentives, the result could be further de-industrialisation, layoffs and weakened domestic value chains.
“At a multilateral level, this could set a risky precedent. Under WTO [World Trade Organization] rules, particularly the Most Favoured Nation clause, Zimbabwe must extend similar treatment to all trading partners unless done within a formal free trade agreement or a recognised preferential framework,” Karoro said.
“Should other countries — especially major trade partners like China, the EU [European Union], or Sadc states — demand the same zero-tariff access, it could erode Zimbabwe’s tariff revenues and undermine its bargaining power in regional and continental trade arrangements such as AfCFTA [African Continental Free Trade Area].”
