Trade Expert Warns of Job Losses in Ghana Due to Trump’s New Tariffs
Appiah Kusi Adomako, West Africa Director for CUTS International, has raised concerns over the impact of the recent U.S. decision to impose a 10% tariff on Ghanaian exports. Speaking on PM Express Business Edition on Joy News, he warned that these tariffs could lead to significant job losses and economic disruptions, especially for industries that rely on trade with the U.S.
He emphasized that the new trade restrictions would directly affect Ghanaian businesses, particularly those benefiting from the African Growth and Opportunity Act (AGOA), which allows duty-free access to the U.S. market. He cited an example of a garment manufacturing company in Koforidua that supplies major U.S. brands like Walmart. With the new tariffs in place, he noted, such businesses might struggle to remain competitive, potentially resulting in worker layoffs.
The situation is further complicated by the uncertainty surrounding AGOA, which is set to expire this year. Mr. Kusi Adomako expressed doubt about the Trump administration’s willingness to renew the agreement. Even if AGOA remains, he suggested, the U.S. president could introduce new restrictions that limit Ghana’s access.
He urged Ghana to take this as a warning sign to reduce its reliance on the American market. According to him, the unpredictability of U.S. trade policies highlights the need for economic resilience. “Even countries like Canada and the UK have faced trade restrictions from the U.S., so Ghana is not exempt,” he noted.
In response to the crisis, Mr. Kusi Adomako called on the Ghanaian government to act swiftly. He suggested that President Mahama and his administration should be holding emergency meetings to strategize a response. However, he dismissed the idea of retaliatory tariffs on U.S. goods, stating that such measures would not be effective. Instead, he advised seeking alternative export markets.
One viable solution, he proposed, is leveraging the African Continental Free Trade Area (AfCFTA), which offers fewer trade restrictions for Ghanaian products. He acknowledged that many exporters prefer the U.S. market due to payments being made in U.S. dollars, but he argued that trading with other African countries could still be profitable. “If you sell goods to Mozambique, you still get paid in dollars,” he pointed out.
However, he admitted that infrastructure challenges within Africa remain a major hurdle to trade expansion. He highlighted inefficiencies in logistics, such as the fact that shipping goods from Ghana to Côte d’Ivoire often requires routing through Madrid, Spain, due to European control over shipping routes. This, he noted, increases costs and delays trade within the continent.
Despite these difficulties, Mr. Kusi Adomako insisted that Ghana must take decisive action to shift its trade strategy. He warned that continued dependence on the U.S. market could lead to deeper economic challenges if further trade barriers are introduced. “We cannot keep relying on American brands,” he cautioned. “If we don’t take steps now, this tariff issue could mark the beginning of a much larger economic crisis for Ghana.”
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