Ghanaian exporters are preparing for the repercussions of a new 10% import tariff imposed by the United States, which is anticipated to impact significant non-traditional export sectors.
This measure, announced by US President Donald Trump, has raised alarms among local producers and exporters regarding potential declines in market share, competitive pricing, and revenue from the American market.
As reported by the Ministry of Trade, Agribusiness and Industry, the new tariff will specifically target Ghana’s cocoa derivatives—a vital segment of value-added exports—as well as garments and textiles, cashew, shea butter, and various agricultural products.
Given that Ghana is one of the leading cocoa-producing nations globally, this decision could hinder efforts to enhance the country’s presence in processed cocoa exports.
The garments and textiles sector, also affected by the tariff according to the Ministry, may experience considerable challenges.
This sector has witnessed modest growth under trade agreements like the African Growth and Opportunity Act (AGOA), which provides duty-free access to the U.S. market. Industry stakeholders are concerned that the new tariff may diminish the cost advantages enjoyed by Ghanaian manufacturers, making it increasingly difficult to compete with other low-cost producers worldwide.
The agricultural sector is similarly impacted. Exports of cashew, shea butter, fruits, vegetables, and yam—some of Ghana’s leading non-traditional exports—are now subject to the heightened import duty.
Exporters in these areas fear that the additional cost burden could result in decreased demand from U.S. buyers or compel them to absorb losses to maintain competitiveness.
Analysts suggest that this development could have wider implications for Ghana’s export-driven growth strategy and foreign exchange earnings, particularly as the country seeks to diversify its economy away from reliance on raw material exports.
Additionally, some are advocating for the government to capitalize on the opportunities offered by the African Continental Free Trade Area.
There are additional suggestions for the government to capitalize on the opportunities offered by the African Continental Free Trade Area. Concurrently, the Ministers of Foreign Affairs and Trade, as well as Agribusiness and Industry, have been engaging in diplomatic discussions with U.S. Ambassador to Ghana, Virginia Palmer, in an effort to address the repercussions following private meetings held on April 7.
