…effective from August 7
Just as Ghana was bracing up for the implementation of a 10% import tariff on goods it exports to the United States, President Donald Trump has shifted the goal posts even further by changing it to 15%. It takes effect from Thursday, August 7, a week after he signed a new executive trade order.
The new executive order revises upwards the 10% imposed tariffs on imports from Ghana and several other West African nations, including Nigeria, Côte d’Ivoire, and Cameroon, under a sweeping executive order issued by President Donald Trump last week aimed at addressing what he described as persistent trade imbalances threatening U.S. national security. The original 10% tariffs were announced on April 2, but subsequently suspended for 90 days raising futile hopes that the mercurial President Trump might rescind them
The revised order, which updates April’s Executive Order 14257, introduces a recalibrated structure of ad valorem duties that targets dozens of trading partners deemed to have failed to offer reciprocal market access or sufficient alignment on economic and security priorities.
I have received additional information and recommendations from various senior officials on, among other things, the continued lack of reciprocity in our bilateral trade relationships and the impact of foreign trading partners’ disparate tariff rates and non-tariff barriers on U.S. exports, the domestic manufacturing base, critical supply chains, and the defense industrial base,” Trump said in the order.
Under the new tariffs, U.S. imports from Nigeria, Ghana, Côte d’Ivoire, and Cameroon will now face a 15% duty rate, a move likely to affect shipments of cocoa, crude oil, cashew nuts, textiles, and machinery parts commonly exported from these countries to the U.S.
Although the US only accounts for about 5% of Ghana’s total exports, the measure has sparked concern among local producers and exporters in Ghana over potential losses in market share, pricing competitiveness, and earnings from the American market.
According to information supplied by the Ministry of Trade, Agribusiness and Industry, the new tariff will directly affect Ghana’s cocoa derivatives—a key value-added export segment, garments and textiles, cashew, shea butter, and a range of agricultural products.
With Ghana being one of the world’s leading cocoa producer countries, the move could undermine efforts to expand the country’s footprint in processed cocoa exports.
Garments and textiles, another sector targeted under the tariff per information from the Ministry, could also see a significant setback.
The sector has seen modest growth under trade frameworks such as the African Growth and Opportunity Act (AGOA), which offers duty-free access to the U.S. market. Industry stakeholders fear the new tariff may erode the cost advantage Ghanaian manufacturers enjoy, making it harder to compete with other low-cost producers globally.
The agricultural sector is not spared either. Exports of cashew, shea butter, fruits, vegetables, and yam—some of Ghana’s top-performing non-traditional exports—are now subject to the increased import duty.
Exporters in these sectors worry that the added cost burden could lead to reduced demand from U.S. buyers or force them to absorb losses to remain competitive.
Analysts say the move could have broader implications for Ghana’s export-led growth strategy and foreign exchange earnings, especially at a time when the country is working to diversify its economy away from raw material exports.
Analysts say the measures could strain relations with nations that are key players in the African Continental Free Trade Area (AfCFTA), which the U.S. has expressed support for in previous forums. Instructively though the US facilitated African Growth and Opportunities Act, - introduced by the George W. Bush administration two decades ago, allowing eligible African countries, Ghana inclusive, to export a wide range of goods duty free to America - is up for review this September and most analysts suspect the Trump administration will decline to renew it.
Trump’s executive order includes anti-transshipment measures imposing a 40% duty on goods routed through third countries to evade tariffs. It also calls for semiannual publication of blacklisted facilities and countries used in circumvention schemes.
The new tariffs take effect seven days after the signing of the order, with limited exemptions for goods already in transit. The U.S. Trade Representative and the Department of Commerce will monitor compliance and recommend further action if countries retaliate or fail to address U.S. concerns.
Source: Toma Imirhe
Comments