Trade

The “Liberation Day” tariffs proposed by the United States on April 2 included a blanket 10% increase for countries with which the U.S. runs bilateral trade surpluses or small deficits, and a range of higher tariffs for 56 economies with which the U.S. runs sizeable trade deficits (excluding Canada and Mexico as partners in the U.S-Canada-Mexico free trade agreement; and Cuba, Russia and North Korea).

The FAO Food Price Index fell marginally in May but remained 6 percent higher than its May 2024 level. The decline was driven by falling cereals, sugar, and vegetable oils prices.

Current U.S. trade policies—though primarily focused on major global players including China, the European Union, and North American partners Canada and Mexico—also have economic consequences for smaller countries and regions around the world. In sub-Saharan Africa (SSA), these impacts will be felt both directly, through newly imposed tariffs, and indirectly, as collateral damage in a potential trade war between the world’s largest economies.

The FAO Food Price Index rose 1 percent in April, driven by increasing cereal, dairy, and meat price. While the Index was 7.6 percent higher than its April 2024 level, it remains nearly 20 percent lower than the record reached in March 2022.

Second in a blog series examining the potential consequences of the recently-proposed U.S. tariffs for global agrifood trade. Read the first post here.