African delegations push for AGOA extension as U.S. Federal Reserve cuts interest rates

Delegations from Kenya and four other African nations have reportedly lobbied Washington for a temporary extension of the African Growth and Opportunity Act (AGOA), which grants duty-free access to the U.S. market for key sectors such as textiles, automotive, and mining.

AGOA, introduced to support African economic growth and counter China’s influence, faces uncertainty despite broad bipartisan backing in Congress.

According to a daily market watch prepared by Access Bank group, despite bipartisan support in Congress, a previous attempt to renew AGOA for 16 years failed, and current political will, particularly under President Trump’s trade policies, is uncertain.

“The delegation, including private investors and government officials, held over 30 meetings with Congress members and aides, finding broad support for renewal but no clear path to attach it to legislation within the next two weeks,” the commentary.

Without an extension, tariffs on African exports like synthetic textiles could rise sharply (e.g., from 10% to 43%), risking mass layoffs and a shift of business to Asian manufacturers, particularly China.

The White House and key US offices have not yet commented on the issue.

On the international front, the Federal Reserve cut its benchmark interest rate by a quarter percentage point to 4%–4.25%, citing a weakening labor market and shifting risks toward employment despite lingering tariff-driven inflation.

Chair Jerome Powell emphasized that job creation is slowing and unemployment has risen, framing the move as a “risk-management cut” rather than the start of an aggressive easing cycle.

The Fed signaled two more reductions this year, updating projections to reflect a slightly stronger growth outlook for 2026 alongside modestly higher inflation.

The decision followed months of political pressure from President Donald Trump, whose efforts to influence the Fed have heightened tensions, though Powell secured broad committee support with only one dissent in favor of a larger cut.

Policymakers remain cautious, stressing a meeting-by-meeting approach as they weigh elevated inflation against rising unemployment.

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