Here's the latest update on US tariffs concerning Ethiopia, including the status of deals, agreements, and the presence of US companies:

Tariff Status for Ethiopia:

• 10% Baseline Tariff: As of April 2025, Ethiopia was hit with a 10% tariff as part of President Trump's initial round of global tariffs. This 10% baseline tariff remains in place for countries without a specific new trade deal with the US.

• Potential Additional 10% Tariff for BRICS Alignment: The U.S. has threatened an additional 10% tariff on any country aligning with "Anti-American BRICS policies." Ethiopia is a member of the BRICS group (which also includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Indonesia, and Iran). While no official action has been taken to impose this threatened measure specifically on Ethiopia yet, the threat is explicitly linked to BRICS affiliation.

• August 1, 2025 Deadline: The current temporary pause on higher, country-specific reciprocal tariffs was extended to August 1, 2025, for most trading partners. Absent new deals or further extensions, steep tariffs could automatically take effect for countries that haven't reached an agreement with the US. It's important to note that while some countries received specific proposed tariff rates if no deal is reached by August 1 (e.g., Japan, South Korea, etc.), Ethiopia was not among the 14 countries that received these specific "warning letters" as of July 7, 2025. This suggests that the 10% baseline tariff may be the primary concern for Ethiopia unless a specific higher rate is announced before August 1, or the additional BRICS tariff is formally applied.

Status of Deals and Agreements:

• No Bilateral Trade Agreement: Ethiopia currently has no bilateral trade or investment agreement directly with the United States.

• AGOA Eligibility: Ethiopia's eligibility for preferential trade benefits under the African Growth and Opportunity Act (AGOA) was revoked in January 2022 due to human rights concerns. A decision on whether to resume AGOA trade privileges for 2024 was previously pending, but the current tariff situation makes this less clear.

• Trade and Investment Framework Agreement (TIFA): The U.S. and the Common Market for Eastern and Southern Africa (COMESA), which includes Ethiopia, signed a TIFA in 2001. This agreement aims to promote trade and investment, but it is not a comprehensive free trade agreement.

• G20 Common Framework Debt Relief: Ethiopia recently concluded a $3.5 billion debt relief deal with official creditors under the G20 Common Framework as of July 2, 2025. This indicates ongoing international financial engagement with Ethiopia.

• Other Trade Agreements: Ethiopia is a signatory to other regional and continental trade agreements, including COMESA, IGAD, the African Continental Free Trade Agreement (AfCFTA), and the Cotonou Agreement (with the EU). Ethiopia is also in the process of acceding to the WTO.

US Companies Operating in Ethiopia:

Several major U.S. companies have a presence or conduct business in Ethiopia, particularly in sectors like aviation, agriculture, and hospitality. These include:

• Boeing: Active in the aviation sector.

• Corteva: An agricultural science company.

• General Electric: Involved in various industrial sectors.

• Coca-Cola: A significant presence in the beverage industry.

• U.S.-branded hotels: Several American hotel chains operate in Ethiopia.

The U.S. government, through its Embassy in Addis Ababa and the Foreign Commercial Service, provides assistance to U.S. companies looking to export to or invest in Ethiopia, helping them navigate local processes and identify opportunities. Ethiopia has also recently opened up more sectors, including export, import, retail, and wholesale, to foreign businesses, which could create new opportunities for U.S. companies.