Government urged to absorb part of US tariff cost to support Ghanaian exporters
An economist at the University of Ghana, Professor William Baah-Boateng, has urged the government to consider absorbing part of the new 10 per cent tariff imposed by the United States on some Ghanaian exports to reduce its impact on local businesses.
He said such an intervention would provide short-term relief for exporters while broader efforts are made to address challenges facing the country’s export sector.
Speaking in an interview with JoyNews last Friday, April 5, 2025, Prof Baah-Boateng noted that although the tariff was not as high as those imposed on countries like China and Canada, its effect on Ghanaian exporters could not be ignored.
“If indeed this tariff is something that is going to worry us, can we absorb part of it so that at least when it goes out there it will not be sold at a higher price?” he asked.
The US government recently announced a 10 per cent tariff on a range of imported goods, including agricultural produce from several African countries, sparking concerns among Ghanaian exporters about the potential impact on their competitiveness.
Prof Baah-Boateng said while the tariff itself posed challenges, delays at Ghana’s ports and other structural problems within the export system often contributed more significantly to high production costs.
He pointed to the long waiting times transporters sometimes faced at the ports as a key issue that the government should address to reduce costs for exporters.
“For instance, if you are in Koforidua and you are exporting gari to the US, and the car that you rented is going to spend about three, four days there, can we do something to minimise those bottlenecks so that the car will just spend one day and then the goods will get out?” he asked.
Prof Baah-Boateng said removing such bottlenecks would likely have a greater impact on reducing costs for businesses than the 10 per cent tariff.
He urged the Ministry of Trade and Industry and other relevant state institutions to provide clear communication to exporters to prevent panic.
“I expect the Ministry of Trade and Agribusiness to come in and assure us because they have the figures. They will be able to know how the effect will be, that it is not rocket science,” he said.
He also cautioned against creating unnecessary alarm over the tariff, pointing out that Ghana’s situation was far less severe than that of some other countries.
“We are not Canada, where we’ve been slapped with over 50 per cent. We are not China, where we have in excess of 50 per cent. We have the 10 per cent. Let’s be sober so that we will not panic,” he advised.
Prof Baah-Boateng also warned against any rushed attempt by Ghana to enter into a bilateral free trade agreement with the US as a response to the tariff.
He said Ghana would be better served working through regional bodies like the African Union to strengthen its bargaining position in global trade negotiations.