
US envoy plays down AGOA, African visa concerns
The top US diplomat for Africa on Tuesday dismissed allegations of unfair US trade practices and said that funding delays would not derail a key railway project connecting Angola, Zambia and the Democratic Republic of Congo.
African Union officials on Monday questioned how Africa could deepen trade ties with the United States under what they called "abusive" tariff proposals and tightening visa conditions, largely targeting travellers from Africa.
"There is no visitation ban," Ambassador Troy Fitrell said during a press conference at the US-Africa Business Summit in Luanda. He said that US consulates continue issuing visas regularly, although some now come with shorter validity periods due to concerns over overstays.
Several African business and political leaders have raised concerns about a sharp drop in visa approvals, particularly for travellers from West Africa, since late 2023.
Washington's tariff plans have also added to cooling diplomatic ties with African countries, as some economies — including Lesotho and Madagascar — warned that even a baseline 10% levy could threaten critical exports such as apparel and minerals.
But Fitrell said that the proposed US import tariffs were not yet implemented, and negotiations were ongoing to create a more reciprocal trading environment, including through the renewal of the African Growth and Opportunity Act (AGOA).
The initiative grants qualifying African nations duty-free access to the US market and is due to expire in September.
Fitrell also reaffirmed his country's commitment to the Lobito Corridor railway project, which links Angola's coast to copper-rich Zambia and the Democratic Republic of Congo.
"It's not at risk," he said of the initiative.
The US International Development Finance Corporation's Head of Investments, Conor Coleman, described it as a "win-win" for US investors and African economies, and underscoring its significance for regional integration.
The Trump administration has axed swaths of US foreign aid for Africa, as part of a plan to curb spending it considers wasteful.
Angolan President João Lourenço, addressing more than 2 000 government and business leaders at the summit, said US companies should shift from aid to investment-driven partnerships.
"It is time to replace the logic of aid with the logic of investment and trade," Lourenço said, urging diversification into sectors such as automotive manufacturing, shipbuilding, tourism, cement, and steel production.
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Although consumer sentiment remains weak, the stock market is at an all-time high, which could give Americans a confidence boost. But that's not translating into spending. Consumer spending unexpectedly fell in May for the first time since January, the Commerce Department reported Friday. In real terms, consumer spending has now fallen so far in 2025. Inflation is ticking higher, job growth is slowing and retail sales are sinking. That's a concern, because consumer spending makes up two-thirds of America's economy. 'Households are anxious about what tariff-induced price hikes will do to their spending power, while concerns about the robustness of the jobs market are on the rise,' said James Knightley, chief US economist for ING, in a note to clients Friday. 'Equity markets have recovered and are at all-time highs, but house prices nationally are starting to come under downward pressure.' Many mainstream economists argue that the low inflation of the spring that helped boost consumer sentiment represents a calm before the summer storm, when they expect prices to rise as companies finish selling off inventories of products they had brought to the United States before Trump imposed tariffs. Friday's inflation report showed that the changeover to higher-tariff goods may have already begun to happen. 'Higher prices from tariffs may be starting to work their way through the economy,' said Robert Ruggirello, chief investment officer at Brave Eagle Wealth Management. Although tax cuts from Trump's sweeping domestic policy agenda could help mitigate higher prices from tariffs, Trump's trade war continues to risk retaliation from American's key trading partners. Higher tariffs from foreign countries could slow the US economy, risking a recession. 'Trading partners taking retaliatory action could have a lasting impact on US output and, accordingly, public finances,' said Michel Nies, an economist at Citi. That's why trade deals are so urgent: America's economy remains strong, but cracks are forming. Tariffs are a big reason why. More delays will generate more uncertainty. And those good vibes could turn bad pretty quickly. CNN's Matt Egan contributed to this report.