Trade experts and industry leaders in Ghana are expressing growing concerns about the recent 10% reciprocal tariff imposed by the United States on all Ghanaian imports.
This decision, announced by U.S. President Donald Trump as part of a broader package of global tariffs, has the potential to disrupt Ghana’s export market and undermine economic progress, according to former Deputy Minister of Trade and Industry, Michael Okyere Baafi.
Baafi, who has extensive experience in Ghana’s trade policies, highlighted the significant losses this move could cause, particularly for Ghanaian exporters who previously benefitted from the African Growth and Opportunity Act (AGOA). Under AGOA, Ghanaian products gained preferential access to the U.S. market, allowing over 6,700 goods to enter duty-free, thereby boosting the country’s foreign exchange earnings and contributing to economic growth.
“This tariff represents a major setback. Before the tariff, Ghana enjoyed a competitive edge under AGOA. The duty-free access to the U.S. market was crucial for our export industry,” Baafi stated. “Now, Ghanaian exporters are facing higher costs, which makes it harder to remain competitive in what is one of the world’s most lucrative markets.”
While Baafi acknowledged that Ghana has imposed its own tariffs on U.S. imports in the past, he criticized the new U.S. policy, arguing that Ghana, as a developing country, should be receiving trade incentives instead of facing additional barriers.
“The idea of reciprocity doesn’t apply in the same way for a country like Ghana,” Baafi said. “The U.S. had been helping us develop our economy through AGOA, but this tariff move undermines that support.”
With AGOA’s expiration set for September 2025, the news of the U.S. tariff has thrown Ghana’s hopes of a potential extension into doubt. Baafi, who had worked on securing an extension of AGOA during the previous administration, expressed his dismay at the setback, warning that Ghanaian exporters could face even tougher conditions moving forward.
“This new tariff puts our exporters at a significant disadvantage,” he explained. “What was once a stable avenue for exporting goods into the U.S. market is now jeopardized, and we may see a decline in foreign exchange earnings as a result.”
Shifting Focus to Intra-African Trade
In light of the uncertain future of trade relations with the U.S., Baafi emphasized the urgent need for Ghana and other African nations to turn their attention to intra-African trade. He stressed the importance of the African Continental Free Trade Area (AfCFTA) as a potential solution to reduce reliance on Western markets and build stronger trade partnerships within the continent.
“The AfCFTA presents a unique opportunity for Africa to create its own trade network,” Baafi pointed out. “With a combined GDP of $3.4 trillion, Africa has the potential to be a global economic force if we invest in intra-Africa trade. The U.S. tariff decision should push us to focus on growing our own economic ties within the continent.”
Baafi also expressed concern about the government’s approach to implementing AfCFTA, noting the recent suspension of contracts at Ghana’s National Coordination Office of AfCFTA. He warned that failing to prioritize intra-African trade could leave Ghana vulnerable to economic shocks caused by external factors, like the recent U.S. tariff.
“If the government doesn’t take the necessary steps to make AfCFTA a priority, we could face a collapse in our export sector,” he cautioned. “We cannot rely solely on the whims of foreign powers.”
Looking ahead, Baafi remains skeptical about any reversal of the U.S. tariff decision, noting that President Trump has made his position clear. “I don’t expect the U.S. to reconsider this policy. The only viable option for Ghana now is to strengthen trade within Africa and make AfCFTA work,” he concluded.
