FAGE shifts exports from U.S. market amid 10% tariff hike — Eyes AfCFTA opportunities

THE Federation of Associations of Ghanaian Exporters (FAGE) wants a diversification of export destinations following the sudden imposition of a 10% tariff on Ghanaian exports to the United States (U.S) by the Trump administration.

It said the U.S has been one of Ghana’s key export destinations, especially under preferential trade agreements such as the African Growth and Opportunity Act (AGOA). 

However, the new tariff measure, which many exporters did not anticipate, has forced exporters to reconsider their strategies and explore alternative markets.

In an interview with Graphic Business, the President of FAGE, Davis Korboe, described the development as a “big blow” to Ghana’s export sector, noting that the move has disrupted trade flows and raised concerns over the long-term sustainability of Ghana’s heavy dependence on the U.S. market.

“Our cost of production is already very high in Ghana. Adding a 10% tariff makes our products uncompetitive in the U.S. market. This is why we’ve always advocated diversification. We can’t keep all our eggs in one basket,” he said.

 
Tariff

The President of the United States of America, Donald Trump, on April 2, 2025 announced a unilateral 10% tariff, effective April 5, 2025, covering imports from all countries, including Ghana, into the United States.

However, goods that are in transit as of the date were exempt from the announced tariffs. In addition, reciprocal tariffs were also imposed on over 50 countries, with rates ranging from 11% to 50% effective April 9, 2025.

According to President Trump’s Executive Order, the tariffs were being imposed pursuant to the International Emergency Economic Powers Act of 1977 (IEEPA) due to economic and national security implications of the country’s global trade deficits.

The Executive Order specifically exempts certain products from the universal and reciprocal tariffs. These products include copper, pharmaceuticals, semiconductors, lumber articles, energy and energy products and certain critical minerals.

The US market provides a ready-made complementary market destination for several important priority export products from Ghana such as apparel, cocoa derivatives, gold jewellery, shea butter, horticulture products, including root crops (yam), fruits, vegetables and cashew.

 
AfCFTA

Mr Korboe said rethinking and leveraging the African Continental Free Trade Area (AfCFTA) as an alternative trade strategy and wind towards the African market will be a viable platform for growth for exporters.

However, he said significant barriers such as poor transport infrastructure, long customs procedures and inconsistent trade regulations which makes intra-African trade costly and inefficient must be addressed for the continent’s trade potential to be fully realised.

“There’s a $3.7 trillion market right here on the continent. We should be deploying efforts to access those opportunities, it is time to prioritise regional trade fairs, cross-border logistics, and targeted market intelligence to understand what the African market demands.”

We believe in the AfCFTA, but the practical issues on the ground—like delays at the borders and logistics challenges—are killing our competitiveness, Mr Korboe said.
 

Exporters in limbo

He disclosed that the unexpected nature of the tariff has left many exporters scrambling to renegotiate contracts and clarify cost burdens with U.S. buyers. 

According to him, several shipments were already en route, and there is uncertainty about whether Ghanaian exporters or their American partners will absorb the added cost.

“This is not just a trade policy issue—it’s a livelihood issue, for many exporters, their margins are already thin. If they have to take on the 10% cost, it could drive them out of business,” he said.

 
Govt engagement underway

He added that FAGE has begun engaging key state institutions, including the Ghana Export Promotion Authority (GEPA), the Ministry of Trade, Agribusiness and Industry, and the Ministry of Foreign Affairs and Regional Integration, to explore both diplomatic and trade remedies.

While negotiations continued, he encouraged members of FAGE to use the moment to rethink Ghana's export strategy.

“This is not the time to panic, but to plan. We must use this disruption to realign our trade priorities and strengthen intra-African trade,” Mr Korboe added.

Govt’s response

In a statement issued last Saturday, the Ministry of Trade, Agribusiness and Industry assured the Ghanaian private sector, especially major exporters, investors and the public of the government’s commitment to engage the United States of America on the imposition of tariffs on Ghanaian products to avoid trade disruptions and investment decisions in the country.

The ministry said it was also engaging relevant stakeholders to determine the extent, and to assess the full impact of the US tariffs on the country’s economy.

It added that various strategies were under consideration to mitigate the immediate impact on Ghana’s trade.
 

Development 

The United States Ambassador to Ghana, Virginia Palmer, held a meeting with Ghana’s Minister of Foreign Affairs, Samuel Okudzeto Ablakwa, to discuss the details of the tariffs and explore ways U.S and Ghana could further strengthen partnership.

Ambassador Palmer offered a hint of possible compensatory measures, suggesting Ghana might benefit relative to others.

“I hope Ghana will get some advantages vis-à-vis its competitors,” she said.