
Ethiopia Readies for U.S. Trade Talks as Trump’s 10% Tariff Takes Effect
By Mintesinot Nigussie
Published on 07/10/25
Ethiopia is preparing to begin formal negotiations with the United States following the enactment of a sweeping 10% import tariff under President Donald Trump’s newly approved “One Big Beautiful Bill.” The measure, signed into law earlier this month, imposes duties on nearly all imports, affecting dozens of trading partners including Ethiopia.
Zerihun Abera, acting executive director for international and regional trade integration at Ethiopia’s Ministry of Trade and Regional Integration, told The Reporters that the government is drafting a technical proposal that will outline its position ahead of the upcoming talks. The proposal is expected to be sent to the U.S. through the Ministry of Foreign Affairs.
“Our approach is to ensure that national interests are protected, especially in light of the trade privileges we lost following our suspension from AGOA,” Zerihun said in an interview with The Reporter. He added that negotiations will be structured to assess tariff levels by product category rather than apply the 10% rate uniformly.
The United States has expressed particular interest in Ethiopia’s agricultural and industrial sectors, areas that could face tariff hikes if no agreement is reached. According to Zerihun, discussions will prioritize those sectors, with a joint technical committee expected to oversee the process and guide implementation timelines.
Trump’s tariff plan, described by the president as “the most beautiful word in the dictionary,” is part of a larger strategy to reduce trade deficits and restore U.S. manufacturing competitiveness. Though controversial, the plan has gained legislative support in Washington and forms a key pillar of Trump’s broader economic policy.
Ethiopia is joining a growing list of countries now negotiating similar deals with the U.S. In recent weeks, China, the United Kingdom, and Vietnam secured trade exemptions or partial reductions through fast-tracked agreements. Other major trading partners, including India, the European Union, Japan, and South Korea, are actively engaged in talks to minimize the impact of the tariff.
Several countries have tied their negotiations to sectoral offers: Indonesia is proposing increased imports of U.S. agricultural goods; Israel is seeking to reduce its rate from 17% to 10%; and Canada resumed talks after adjusting its digital tax policy.
Negotiations are expected to accelerate ahead of an August 1 deadline, after which countries that fail to reach deals could face expanded duties or broader restrictions.