Ghana’s trade prospects with the United States have hit a stumbling block following the imposition of a 10% reciprocal tariff on all Ghanaian imports into the U.S.—a decision announced by President Donald Trump on what he dubbed “Liberation Day.”

Former Deputy Minister of Trade and Industry, Michael Okyere Baafi, has raised alarm over the move, warning of dire repercussions for Ghana’s export-driven sectors and overall economic stability.

From AGOA Privileges to Tariff Burdens

Before the implementation of this policy, Ghana enjoyed preferential access to the U.S. market under the African Growth and Opportunity Act (AGOA). This program granted Ghanaian exporters duty-free and quota-free access for over 6,700 products, supporting foreign exchange inflows and stimulating economic growth.

“Under AGOA, we had a strategic edge. The new tariff essentially erases that competitive advantage,” Baafi said, lamenting the loss of access to a market that had once been an economic lifeline for many Ghanaian businesses.

A Question of Reciprocity or Retaliation?

Baafi acknowledged that Ghana had previously imposed 17% tariffs on some U.S. imports—a factor that may have influenced the Trump administration’s decision. However, he argued that reciprocity should consider the disparity in economic development.

“Ghana is still a developing economy. These kinds of reciprocal trade decisions harm our ability to grow and compete,” Baafi noted, suggesting that the U.S. had turned away from its developmental support stance.

Exporters Bracing for Tough Times

With AGOA set to expire in September 2025, hopes were high for a renewal. Baafi revealed that Ghana had engaged in diplomatic efforts to secure an extension. However, the imposition of tariffs casts doubt over those prospects.

“This couldn’t come at a worse time. We had anticipated continued support, and now we face an uphill battle,” he warned, adding that the new costs would undermine exporters’ ability to remain competitive.

He further predicted a decline in foreign exchange earnings, possible depreciation of the cedi, and increased strain on Ghana’s manufacturing and agro-processing sectors.

The Case for Intra-African Trade

In response to the changing global trade dynamics, Baafi underscored the need for Africa to invest more in regional integration through the African Continental Free Trade Area (AfCFTA).

“With a combined GDP of over $3.4 trillion, Africa has enough market potential to support its own economies. We must shift our focus to trading among ourselves,” he said.

However, he criticized the current government’s apparent lack of commitment to AfCFTA’s implementation, citing the termination of key contracts at the National Coordination Office as a sign of dwindling support.

“Without a solid export policy and serious engagement in AfCFTA, Ghana will continue to suffer from external trade shocks,” Baafi cautioned.