Minority warns of export crisis as U.S. imposes new tariff on Ghanaian goods

The Minority in Parliament is raising alarm over the government’s silence on a 10% tariff imposed by the United States on Ghanaian exports — a move they warn could devastate key sectors of the economy and cost thousands of jobs.

The tariff, announced by former U.S. President Donald Trump, is reportedly in retaliation to Ghana‘s 17% average tariff on American imports. Although its effect on Ghana’s African Growth and Opportunity Act (AGOA) status remains uncertain, the financial consequences are already triggering concern among exporters and opposition lawmakers.

In a strongly worded statement, the Minority accused the government of failing to respond decisively to the looming threat. “How will the government respond to this sweeping tariff? We have yet to see any specialized program to support exporters or expand Ghana’s production base,” the statement read.

Vulnerable sectors brace for impact

Three major export sectors—apparel, cocoa, and yams—are seen as most at risk under the new tariff regime:

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• Apparel: The industry, which employs more than 5,000 young workers producing for U.S. markets, may face sharp declines in demand as increased costs make Ghanaian garments less competitive.
• Cocoa products: While raw beans may remain duty-free, processed cocoa items — accounting for nearly 30% of Ghana’s cocoa exports — could be slapped with the tariff, threatening efforts to boost value addition.
• Yams: Ghanaian yams have benefitted under AGOA, but the new tariff could undercut their pricing advantage, reducing demand in the U.S. market.

The Minority also criticized the government’s failure to build a resilient export strategy. They argue that despite previous efforts under the NPP administration to strengthen intra-African trade through the African Continental Free Trade Area (AfCFTA), the current NDC government has done little to follow through.

They pointed to low budget allocations for AfCFTA implementation as evidence of the government’s lack of commitment to reducing Ghana’s overdependence on U.S. trade.

Minority demands urgent intervention

To mitigate the fallout from the U.S. tariff, the Minority is calling on the government to:

• Fast-track export market diversification, particularly through AfCFTA, to reduce reliance on the U.S.
• Support exporters with financial aid, training, and better access to global market data.
• Encourage value addition, shifting from raw exports to processed goods with higher profit margins.
• Engage the U.S. diplomatically, to clarify the implications for AGOA and advocate for a review or removal of the new tariff.
• Provide a clear policy direction to reassure stakeholders and safeguard affected sectors.

Despite some progress through initiatives like One District, One Factory (1D1F), which has boosted exports of iron rods, ceramics, and plastics to West Africa, the Minority insists that broader reforms are urgently needed.

“The government must act now to prevent a full-blown export crisis,” the statement concluded.