Ghana at Risk at Losing Over $1Bn Export Revenue Should 10% U.S. Tariff be Implemented – Expert Reveals

Ghana could loss over $1 billion in export revenue should the United States government proceed with its proposed 10% tariff on imports from Ghana.

This policy, although put on hold for now, is an attempt by the Trump administration to protect American industries and correct the U.S. increasing trade deficits. The sweeping tariffs ranges from as high as about 50% to as low as 10% depending on how the Trump administration perceives the country.

Ghana, being in the good books of the U.S. and the cordial bilateral relationship, was only slapped with the minimum tariff of 10%.

But it is emerging that, although low, the tariff has a huge implication for Ghana’s export earnings should it kickstart.

Senior Partner at EM Advisory, Dr. Abudu Abdul Ganiyu, has revealed how deep the tariff will cut into the export earnings of Ghana, which is estimated to be over $1 billion in the next five years.

Speaking at the Association of Ghana Industries (AGI) Breakfast Meeting, Dr. Abudu Abdul Ganiyu, Senior Partner at EM Advisory, painted a picture of how deeply Ghanaian exporters, particularly those in the top ten commodity sectors, could be affected by the tariff hike.

He reveals that businesses that export to the U.S. market could lose about 20% of their revenues should the tariff be implemented.

“If the 10 percent tariff imposition stays, then Ghana could suffer over one billion U.S. dollars lost. So as far as export revenue to the U.S. market is concerned, in the normal scheme of things, you would think this is still not significant. But if we narrow it down to the individual businesses, we think it does,” Dr. Ganiyu indicated.

He added that, “one is to have in mind that your exports to the U.S. market could suffer a fall of about 20 percent if you consider the 10 percent tariff imposition and the trade elasticity of the U.S. economy.”

To address this looming challenge, should the tariff be implemented, Dr. Ganiyu proposed a number of practical countermeasures to cushion the blow.

He calls on exporters to consider slightly reducing their prices before goods arrive in the U.S. to absorb part of the tariff. This move would ensure that retail prices in America remain stable, reducing the risk of losing customers due to cost increases.

The senior partner further indicated that long-term relationships with U.S. buyers could be leveraged to share the tariff burden.

“Let’s say the tariff adds 10% to the cost. You take 5% as the exporter, the importer absorbs 5%, this shared approach could help keep businesses running and partnerships intact,” Dr. Ganiyu explained.

Exporters are encouraged to explore new markets beyond the U.S., especially as China and other emerging economies begin to loosen restrictions.

This looming tariff also arrives at a time when China is ramping up its zero-tariff policy for African imports, making the Chinese market increasingly attractive to African exporters.

The contrast between the U.S. imposing barriers and China offering incentives may reshape the continent’s trade alliances over the coming decade.

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