United States President Donald Trump has sent shockwaves across the international market after rolling out new trade policies. The new trade policy, which he calls “America First,” is aimed at rectifying the longstanding advantages foreign countries enjoy during trade at the expense of the American people.
Ghana was not left out of the 60 countries that were affected by Trump’s new 15% tariff on exports. This new development is already causing shock waves in Ghana’s economy, with a high risk of sparking international trade tensions.
Donald Trump argues that this move will balance out trade deficits and boost the consumption of locally produced goods in the U.S.
Over the years, Ghana has relied on the U.S. as a solid trade partner, specifically in the agricultural and mineral sectors. Agricultural products such as cocoa, shea butter, and palm, as well as precious minerals such as gold and bauxite, are major goods Ghana regularly exports to the U.S.
Exporters who send a variety of goods to the shores of America will now have to deal with an additional 15% duty, leaving them in a dilemma of whether to foot the extra costs or pass them to the consumers.
The 60 countries affected by this new tariff from the U.S. will only feel the heat in the short term; the U.S. will also bear consequences. American importers and producers who rely on raw materials from these sanctioned countries, including Ghana, will see a surge in costs, leading to increased prices of products or disruptions in production.
This 15% tariff imposed by the U.S. is a wake-up call for Ghana to diversify its global trading partners to prevent subsequent trade restrictions. Processing of raw materials into finished goods has become crucial to add value to our primary materials.
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