Ghana’s importers and exporters association express concern over US tariff increase

The  Association of  Importers and Exporters in Ghana released a statement stating essential concern over the current decision made by the United States government to impose a 10% tariff increase on goods imported into Ghana.

The Association in a press statement released on Friday, April 4, severely censured the move, describing it as an ignoring established guidelines and principles of the World Trade Organization (WTO), and cautioned that it will have severe consequences for Ghana’s economy.

The new tariff increase, which was implemented during President Donald Trump’s administration, which is expected to create significant obstacles for Ghanaian businesses.

As the statement highlights, one of the most direct outcomes will be on exports, with the hiked tariff making the products in Ghana “less competitive” within the United States market.

This will really to a “drop in demand and revenue” for exporters in Ghana, possibly resulting in loss of jobs within the sector widening income disparities and inequality across the country.

The Association raised concerns about  the economic ripple effects. A decrease in exports could lead to in increased financial instability, with the possibility for financial institutions to raise interest rates due to economic pressures.

The Association encourages the government in Ghana to explore potential measures to mitigate the impact of the tariff hike, including diplomatic efforts to encourage the United States government to reconsider the policy.

Moreover, the intersection bring down exports and sustained imports that can  worsen Ghana’s trade deficit, putting further strain on the national economy.

As a result, these factors can result to a slowdown in economic growth, affecting national income and growth.

In light of these challenges, the Importers and Exporters Association of Ghana is calling on the Ministry of Trade, Agribusiness, and Industry, as well as the Ministry of Foreign Affairs and Regional Integration, to engage with relevant stakeholders in an urgent dialogue.