US warns Zimbabwe trade talks could collapse

The United States has cautioned that Zimbabwe's efforts to secure reduced tariffs on its exports face significant risks due to tight negotiation timelines, even as a temporary reprieve has been granted by the Trump administration.
On April 9, President Donald Trump announced a 90-day suspension of select reciprocal tariffs affecting multiple countries, including Zimbabwe. This move followed Zimbabwe's formal request for a more balanced trade arrangement with the US.

However, a baseline 10% tariff introduced on April 5 remains in effect across all imports, including Zimbabwean goods, meaning the trade tension is far from resolved.

US Ambassador to Zimbabwe Pamela Tremont told Business Times this week that the greatest challenge remains the limited timeframe available to conclude a deal before the 90-day suspension on the 18% tariff expires.

"We're still having conversations," Ambassador Tremont said. "But the biggest problem is the timeline to negotiate tariffs."

The negotiations were prompted after Zimbabwe submitted a formal proposal to Washington aimed at reducing trade barriers. Finance Minister Professor Mthuli Ncube spearheaded the diplomatic efforts during the recent IMF and World Bank Spring Meetings in Washington, lobbying key US Treasury officials and Capitol Hill representatives.

In response, the Trump administration granted the tariff pause to provide space for dialogue. Yet, with just weeks remaining, the brief window for negotiations is emerging as a critical stumbling block.

"Unfortunately, because we have negotiations with so many countries, I think that 90 days will probably expire before we come to an agreement with Zimbabwe," Tremont warned. "Anyone familiar with trade negotiations knows they don't happen overnight."

She added, "And when you are trying to negotiate with more than 120 countries simultaneously, there's inevitably going to be a problem."

A major sticking point remains Zimbabwe's own tariff policies, particularly steep import duties. Ambassador Tremont pointed out the high vehicle import taxes - sometimes up to 60% - as a key issue affecting reciprocal negotiations.

"To import a vehicle here can cost up to 60% on top of the purchase price," she said. "So by that standard, even 18% on Zimbabwe's exports to the US could be seen as quite generous."

Historically, the US has maintained one of the world's most open economies, often providing preferential access to developing countries without demanding similar concessions on American exports. However, this dynamic is shifting under President Trump's "America First" trade agenda.

"Well, the US has offered generous access to its markets for decades," Tremont noted.

For Zimbabwe, a successful trade deal would be critical to boosting its struggling export sector and bringing in much-needed foreign currency. Yet with the clock ticking, the opportunity to finalize terms is rapidly shrinking.

Despite the urgency, the US remains cautious about rushing negotiations. "We're open to discussions with all countries on how to find a more balanced trade framework," Tremont said. "But this is a complex issue, and we need time to assess each country's position thoroughly."

She acknowledged the pressure on Washington to move quickly but highlighted the volume of countries involved. "We're all in a hurry to make this happen as quickly as possible. But there's a long line of countries that have made offers, and it's going to take time for us to get to all of them."

As the 90-day suspension nears its end, both Harare and Washington face mounting pressure to reach an agreement or risk losing critical momentum.

In the meantime, Ambassador Tremont reaffirmed continued US support for Zimbabwe's health and humanitarian sectors. "The US has US$223 million allocated for health and humanitarian programmes this year," she said.

With both sides aware of the stakes, the coming weeks will be decisive for Zimbabwe's trade relations with its most significant global partner.