In the face of rising global trade tensions, former Finance Minister Dr. Mohammed Amin Adam has urged Ghana to resist calls for retaliatory tariffs against the United States, emphasizing the need to protect local consumers and safeguard economic gains made in recent months.
Speaking at the UPSA National Dialogue on Monday, May 19, 2025, Dr. Adam cautioned that while global powers like China and Canada have chosen to hit back at the U.S. with reciprocal trade measures, Ghana must chart a more cautious, strategic course rooted in economic realities rather than political symbolism.
“Reciprocity sounds politically appealing, but in our context, it could hurt more than help,” Dr. Adam noted. “Our exports to the U.S. account for just about 2% of GDP—barely 0.4% of that falls under the new tariffs. So the impact on us is limited, but retaliation could disrupt our recovery.”
He stressed that Ghana’s economy, which has recently shown signs of stabilization, is still vulnerable, and retaliatory tariffs could trigger price hikes, shrink disposable incomes, and stifle consumer demand.
“Ghana is heavily dependent on imported goods. If we respond with matching tariffs, the cost of American products will rise, and the burden will fall squarely on everyday Ghanaians who already face high living costs,” he explained.
His comments come amid pressure from some trade advocates and civil society groups calling for African nations to adopt a tougher stance against the U.S.’s sweeping new tariff regime. These include a 10% tariff on Ghanaian goods, a sharply reduced 30% tax on Chinese imports (from a previous 145%), and new 20% tariffs on EU exports.
However, Dr. Adam argued that Ghana’s trade leverage with the U.S. is limited, and retaliatory policies would be more symbolic than impactful—potentially derailing gains in inflation control, exchange rate stability, and export performance.
“Let’s not compromise economic stability for political theater,” he urged. “Instead of reacting impulsively, we should focus on deepening export diversification, expanding regional trade under the AfCFTA, and supporting local production to reduce import dependence.”
His call for restraint underscores a broader theme in the dialogue: that African countries must respond to global economic shifts with strategic foresight rather than emotion-driven policy.
