Uganda Turns to Africa as US Hikes Tariffs

UGANDAN President Yoweri Museveni has said his country will shift its trade priorities toward Africa and other global markets following the United States’ decision to impose a 10 percent tariff on imports from most countries, including Uganda.

In a nationally broadcast speech via the Uganda Broadcasting Corporation (UBC) on Thursday, Museveni downplayed the impact of the tariff hike, arguing that the country already has access to alternative markets that offer long-term promise.

‘Trump has put a tax, what shall we do? You have Africa—work on Africa,’ Museveni said, referring to US President Donald Trump’s decision to impose the sweeping tariff increases earlier this month.

He stressed the economic potential of the African continent, noting that its demographic growth would drive demand for decades to come. ‘In the next 30 years, the population of Africa will be the biggest in the world—it will be one quarter of the human race,’ he said.

US tariffs prompt Uganda’s trade realignment

Uganda’s shift comes amid rising trade tensions and changing global dynamics. According to the Office of the US Trade Representative, total goods trade between the two countries reached $238.9 million in 2024, with Uganda exporting $132.6 million worth of goods to the US and importing $106.3 million in return.

The 10 percent US tariff is expected to affect Uganda’s competitive edge in key export sectors, including coffee, grains, and horticultural products.

But officials in Kampala say the country is already moving to diversify its trade relationships. Odrek Rwabwogo, chairman of the Presidential Advisory Committee on Exports and Industrial Development, told local media that new trade routes and opportunities are being actively pursued.

UK and Asia seen as key growth markets

Rwabwogo highlighted Europe and Asia as rising destinations for Ugandan exports, with Britain in particular showing strong demand in the coffee and grain sectors.

‘Uganda Airlines is expected to begin flights to the UK either this or next month,’ he said, explaining that direct air links would help expand market access for Ugandan agricultural products—including bananas, coffee, and grains—already gaining traction in British supermarkets.

He also cited recent trade discussions aimed at increasing Uganda’s visibility in emerging Asian economies, where consumer demand is growing for sustainably sourced African produce.

Uganda eyes intra-African trade expansion

Museveni’s call for regional trade integration aligns with broader efforts under the African Continental Free Trade Area (AfCFTA) to boost intra-African commerce. With over 1.4 billion people and a combined GDP of more than $3 trillion, Africa offers untapped potential for value-added goods and processed exports.

The president’s comments mark a strategic shift in tone, signalling a reduced reliance on Western markets and a stronger push to capitalise on regional and south-south trade ties.

Uganda’s trade and investment officials have already ramped up engagements with neighbouring countries and key economic blocs such as COMESA and the East African Community, aiming to position the country as a central trade hub in the region.

Africa-first policy as global dynamics shift

Uganda’s pivot reflects a growing trend among African nations reassessing their trade strategies amid mounting global protectionism and economic uncertainty.

For Museveni, the message is simple: Africa must become its own best customer. ‘We have the people, we have the land, and we have the demand. It is time to act on it,’ he said.