Kenyan businesses face a significant blow as US President Donald Trump scraps the 'de minimis' tariff exemption for small packages valued under $800 (Ksh103,600). This decision will now subject these packages to tariffs and taxes, leading to concerns about price hikes for consumers and particularly impacting small business owners who ship products to the US.

• Affected packages will now incur tariffs ranging from $80 (Ksh10,360) to $200 (Ksh25,900) per item.
• Peter Navarro, Trump's trade adviser, stated that closing this "loophole" helps restrict the flow of "narcotics and other dangerous and prohibited items" while generating fresh tariff revenues.
• The United Nations' Universal Postal Union reported that 25 member countries' postal operators have suspended outbound postal services to the US, adding to existing US tariffs on Kenyan exports like textiles, tea, and coffee.

Kenya's preferential trade access to the US market through the African Growth and Opportunity Act (AGOA) is set to expire on September 30, 2025, threatening a critical economic lifeline. The expiry could devastate Kenya's apparel manufacturing sector, which relies heavily on AGOA's duty-free access.

• AGOA currently supports 66,000 direct jobs in Kenya's apparel industry, indirectly affecting an estimated 660,000 Kenyans.
• Investor Pankaj Bedi warns that without AGOA, Kenyan manufacturers cannot compete globally, risking loss of investment and jobs.
• The article urges Kenya to secure an AGOA extension or pivot to a Kenya-US Free Trade Agreement (FTA), with a mitigation plan prepared to avoid economic collapse seen in other African nations.