I Build in Africa and America. These Tariffs Hurt Both

I’m not just watching these new tariffs from afar. I’m an African founder, building a startup here in the U.S., with roots that run deep back home. That dual perspective has shaped how I see this trade war, especially the parts people aren’t talking about.

Most headlines focus on goods like cars, electronics, Fresh produce, and steel. But services? That’s where America quietly dominates. And that may be where the biggest problems show up.

The U.S. exports over a trillion dollars in services every year. This includes cloud computing, finance, entertainment, education, consulting, engineering, and healthcare. Many startups, governments, and small businesses in Africa rely on these services every day. And unlike goods, services are delivered digitally. They don’t need ships or containers. They just show up in people’s lives.

There’s been a lot of focus on tariffs on things like raw materials or food. But the most powerful U.S. exports are not just physical items. They’re services: software, media, social apps, streaming, design tools, legal advice, and financial products. These are built into how the world works today. And they are everywhere in Africa.

It’s easy to overlook, but a lot of American service companies are deeply involved in African markets. They handle payroll, video calls, data storage, and websites. Many of them operate freely, with limited regulation, and sometimes compete directly with local startups for users, enterprise customers, and even public contracts.

When President Trump announced new tariffs in April 2025, a 10 percent flat rate on all imports, with even higher ones for “worst offenders” like Nigeria and South Africa, the focus was mostly on goods. But now there’s talk of countries fighting back. And for Europe, that fight might be through services.

Europe has tools to do that. Laws like the Digital Markets Act and the Digital Services Act already forced big tech companies like Google and Apple to change how they work in Europe. These laws have led to big fines and new rules. This year, the EU issued more penalties to U.S. tech firms and is considering using another tool called the Anti-Coercion Instrument to respond to U.S. tariffs. They could block access to services or raise taxes on them. Europe can do this because it has strong rules and leverage.

Africa doesn’t.

In many African countries, there is little enforcement, weak consumer protections, and not much power to push back. U.S. companies often operate freely. Local startups face tough global competitors but lack the capital, cloud credits, or global backing to compete. So when tariffs like these are passed, it’s not just about trade. It’s about who holds the power and who doesn’t.

AGOA, the African Growth and Opportunity Act, was meant to help. It allowed thousands of African products to enter the U.S. duty-free. But these new tariffs put that in danger. Countries like Lesotho, already facing economic hardship, now face a 50 percent tariff. Nigeria and South Africa face rates of 14 and 31 percent. Services were not listed in the new tariffs, but future retaliation could hit them, making it harder for African tech companies to grow or defend their markets.

When I think about trade, I don’t just think about goods in containers. I think about software licenses. Video calls. SaaS tools. App marketplaces. I think about the companies I’ve competed with. I think about startup teams in Africa who lose out on contracts because the foreign option had a bigger name or better pricing. I think about what power looks like, not just the kind that builds things, but the kind that decides what tools people are allowed to use.

That is why this moment is not just about trade. It’s about trust, access, and the future. If service providers get caught in a trade war, the damage won’t just show up in factories. It will hit schools, clinics, startup hubs, and day-to-day work across Africa.

I don’t claim to have the policy fix. But I do know this: tariffs are not just about taxes. They are about power. And the countries that win are the ones that don’t just sell services. They protect them, regulate them, and help their people build new ones too.

It’s time Africa does that as well.