Ghanaian exporters are facing significant challenges due to the United States’ recent decision to impose a 10% tariff on imports, which is expected to negatively affect the country’s key non-traditional export sectors. The announcement, made by US President Donald Trump, has raised concerns among local producers and exporters, who fear the tariff will impact market share, pricing competitiveness, and earnings from the American market.
The tariff will directly target Ghana’s cocoa derivatives, a vital value-added export, as well as garments, textiles, cashew, shea butter, and a variety of agricultural products. As one of the world’s top cocoa producers, Ghana’s efforts to grow its processed cocoa exports may suffer from this tariff, undermining long-term industry growth. The impact could be especially pronounced as the country has been pushing to move beyond raw cocoa exports to higher-value processed products.
Ghana’s garment and textile sector, which has made modest progress under trade agreements like the African Growth and Opportunity Act (AGOA), could also see setbacks. With the new tariff eroding Ghana’s cost advantage, manufacturers may struggle to compete with lower-cost producers from other regions, potentially reversing recent gains made in accessing the U.S. market.
The agricultural sector is not exempt from these tariff changes. Exports of cashew, shea butter, fruits, vegetables, and yam, some of Ghana’s top non-traditional exports, are now subject to the additional duty. Exporters in these industries worry that the increased costs could lead to decreased demand or force them to absorb losses to maintain competitive pricing. The tariff’s impact on these sectors may challenge Ghana’s broader economic strategy, particularly as the country seeks to diversify away from reliance on raw material exports.
Source: citi newsroom