The United States is fighting against the clothing trade in Rwanda

Used clothes donated by Americans have provoked a bitter trade conflict between the United States and one of the world's poorest countries .

Rwanda garment markets, where the government increased import duties on used clothing from the United States from $ 0.25 to $ 2.50 per kilogram.

The tax hikes, which were imposed in 2016, are aimed at encouraging domestic garment production in a country that still bears the scars of a horrible genocide 24 years ago. But they provoked a reaction from the Trump administration.

Used clothes, many of which begin with American charitable donations, have long been a staple of wardrobes in Rwanda. Yet, their abundance and popularity have delayed the development of the local garment industry.

Rwandan President Paul Kagame said rights are needed to stimulate local producers and prevent his country from being used as a "garbage dump" for used American clothing. He proposed to ban imports by 2019.

Restrictions have upset traders in the United States.

The Association of Secondary Materials and Recycled Textiles, which represents companies that sell used and recycled clothing, filed a complaint with the US government in 2017, claiming that trade barriers were threatening thousands of people. American jobs.

After an examination, the Office of the US Trade Representative warned in March that it would suspend some benefits that Rwanda had under AGOA, which allows countries in sub-Saharan Africa to To export to the United States. States without facing tariffs. Rwanda, for example, would lose the right to export duty-free clothing to the United States.

"The President's rulings underscore his commitment to our trade laws and to fairness in our trade relations," US Deputy Trade Representative C.J. Mahoney said in March.

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Critics of the US decision say the government has overreacted to tariffs on used clothing, which only touch $ 17 million US exports per year. a country where the average annual income is about $ 700.

Rosa Whitaker, a former US trade official who worked on African issues under Presidents Bill Clinton and George W. Bush, said the Trump administration was acting from a "distorted sense" from America first ".

"The Trump administration makes a symbolic statement rather than a substantive statement," she said. "I see America picking commercial battles, but I was surprised that we have time to pick one with Rwanda, we are talking about such a small amount of trade. "

Whitaker, who contributed to the design of the AGOA, said that this decision goes against the original intent of the legislation.

"One of the key points of the agreement was to help African countries develop a garment manufacturing base because we understood that clothes were the first point of interest. entry into manufacturing, "she said.

The US Trade Representative did not respond to requests for comment.

Related: The World Trade War

In Rwanda, the government is committed to helping exporters affected by the trade shock by offsetting them with new US taxes.

"We are in a situation where we have to choose, you choose to be a recipient of used clothing … or choose to develop our textile industries," Kagame told reporters in June. "As far as I'm concerned, making the choice is simple."

The reaction to the dispute was mixed in the markets of Kigali, the capital of Rwanda.

Elie Mazimpaka, who has been selling used clothing in Kigali for more than a decade, said that at least half of the sellers in his market are gone. Customers buy less used clothes, many opting for cheaper Chinese products.

While Chinese products are new, some Rwandans have said they prefer the unique style that the second-hand clothes the United States had offered.

Mazimpaka, 35, said the government's plans to boost domestic production have not yet been felt .

"Plants are part of a good plan, but they are not yet delivering the products to poor communities," he told CNN as he sifted through a stack of dresses.

Related: Europe says trade fight with the United States will hurt economic growth

Despite the risks to its own work, Mazimpaka believes that the government's efforts to reduce imports of used clothing is justified.

On a crowded table of denim jackets, football tops and bras, Media Kamirwa, 25, was in agreement.

"America should not use clothing to try to frequent Rwanda, we prefer to stick to our plan, which is to grow," she said.

CNNMoney (Kigali, Rwanda) First published on July 12, 2018: 08:59 ET