US tariff hike threatens Ghana’s exports – economist urges shift to African market

Ghana’s exports to the United States are set to face a fresh hurdle following the US government’s decision to impose a 10 per cent tariff on goods exported to the country. 

The announcement has sparked concerns among businesses and policymakers in Ghana, with fears of reduced competitiveness in the US market.

Professor Godfred Bokpin, a finance and economics expert at the University of Ghana, has called for a strategic shift in Ghana’s trade focus, advocating for stronger engagement with the African Continental Free Trade Area (AfCFTA) to mitigate the impact of the tariff.

Speaking in an interview on Joy FM on April 3, 2025, Professor Bokpin described the tariff as part of a broader trend of rising protectionism by the US. He cautioned that such trade policies are becoming the “new normal” and that Ghana must find ways to adapt.

“This is the new normal. There’s no way of avoiding it. Countries are trying to find ways to cope, respond, and mitigate the effects,” he stated.

He acknowledged that while the 10 per cent tariff is significant, Ghana has limited bargaining power to negotiate a reduction. However, he emphasised the need for adaptability in response to global trade shifts.

The tariff is expected to raise costs for Ghanaian businesses exporting to the US, with potential price increases being passed on to American consumers. Professor Bokpin warned that the added costs could lead to reduced demand for Ghanaian products in the US market, further straining trade relations.

“Americans will feel it because prices will rise, but the main concern is the reduced competitiveness of our products in the US,” he explained.

Despite these challenges, he believes Ghana can mitigate the impact by prioritising trade within the African continent. He strongly advocates for increased engagement with the AfCFTA, which aims to boost intra-African trade by lowering tariffs and promoting regional economic cooperation.

“We need to diversify our trade partners and increase our share of the African market,” he stated.

The AfCFTA presents an opportunity for Ghana to strengthen trade ties within Africa and reduce reliance on traditional markets such as the US and Europe. With regional trade expanding, Professor Bokpin urged the government and businesses to place greater emphasis on the AfCFTA, highlighting its potential to drive economic stability and growth.

“This is the time for Ghana to increase its participation in regional markets,” he stressed. “The African market has significant potential, and by focusing on it, we can build stronger trade relations and improve economic resilience.”

He further underscored the importance of value addition and industrialisation in Ghana’s trade strategy, urging the government to support businesses that process raw materials into finished goods. According to him, this would enhance Ghana’s export competitiveness, not just in Africa but on the global market as well.

“We must focus on adding value to our exports. This is crucial if we are to remain competitive,” he noted.