PM says tariffs may ‘open door for more investment’

By Samuel Abate

Flower exporters say the impacts of the Trump administration’s tariffs are beginning to make themselves felt, jeopardizing a US market they have been working hard to penetrate over the past few years.



Miserach Berhanu, head of the Ethiopian Flower, Vegetable, Fruit, and Herbs Exporters Association, told The Reporter the 10 percent tariff levied on Ethiopia is creating serious challenges for fresh cut flower exporters.

The new tariff adds to an existing three percent duty on flowers in the US, and the sharp increase is expected to slow the progress exporters have made in the US market over the last four years.

Although two-thirds of Ethiopia’s flower exports are destined for the Netherlands, the US has steadily become a promising market, accounting for around USD 45 million in revenues last year, according to Miserach.

However, the new tariff will likely cause the prices of Ethiopian flowers to rise, potentially making them less competitive compared to other countries in the region, namely Ecuador and Colombia, two of Ethiopia’s main competitors in the US flower market who already have an advantage in terms of transportation costs.

Washington has slapped a 10 percent tariff on imports from Ecuador, while Colombia faces a 16.8 percent tariff. However, European countries will face a higher 20 percent tariff in US markets, which are the primary destinations for Ethiopian flower exports indirectly.

Miserach says Ethiopian producers are also working to expand into the Asian and Middle Eastern markets to boost revenue.

The Association reports 187,000 tons in flower and vegetable exports over the first eight months of the financial year, generating USD 367 million in revenue. Although the figure tops last year’s performance by USD six million, exporters report they face significant challenges, particularly in terms of production and security issues.

Flower producers in the Amhara region, including Bahir Dar, have been severely impacted by the ongoing security problems in the area. Many flower companies have either fled the country or halted production due to safety concerns.

The government, on its part, has adopted a pragmatic approach to the US tariffs.

During a recent visit to Vietnam, Prime Minister Abiy Ahmed stated in Hanoi, “the tariffs imposed by the United States on Ethiopia are relatively low compared to those on other countries. This may actually enhance our competitiveness and open the door for more investment in Ethiopia.”

Ethiopia’s agricultural export sector was once a beneficiary of the African Growth and Opportunity Act (AGOA), a trade initiative that allowed duty-free access for Ethiopian agricultural products to the US market. However, Ethiopia was delisted from AGOA in 2021 by the administration of former US President Joe Biden, following the outbreak of the conflict in Northern Ethiopia.