Experts urge export diversification as U.S. Tariffs threaten trade

Economic watchers are urging local trade partners of the United States to accelerate export diversification within the African Continental Free Trade Area (AfCFTA) to mitigate the impact of newly announced U.S. tariffs.

The call comes in response to a recent announcement by U.S. President Donald Trump, who imposed tariffs on all countries, including Ghana. 

The measures include a 34% tax on all imports from China, a 20% tax on imports from the European Union, and a 10% baseline tariff on imports from all nations deemed to have significant trade surpluses with the U.S.

In an interview with Citi Business News, economist Prof. Godfred Bokpin noted the urgency of export diversification for Ghanaian trade partners.

“There isn’t much we can do about these tariffs, and we shouldn’t spend too much time complaining. Instead, we should focus on expanding trade within the AfCFTA and improving the competitiveness of our export sector. 

“These tariffs are unlikely to be reversed soon, and we already face significant trade barriers when exporting to the European Union and other markets.”

The Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo, underscored the need for Ghana to develop its own raw materials to reduce reliance on international suppliers.

“For instance, key raw materials used in manufacturing sanitary pads come from the U.S. With these tariff increases, production costs will rise, ultimately driving up consumer prices. It is crucial to develop local alternatives quickly. We need to engage our scientists and innovators to commercialize research and create the raw materials necessary for our factories to operate.”

As global trade dynamics shift, experts agree that proactive measures—such as regional trade expansion and local production enhancements—are essential to safeguarding Ghana’s economy.