AGI President Warns Ghana’s Trade Prospects Could Suffer Due to Trump-Era Tariff Advantage for Côte d’Ivoire

Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), has expressed serious concerns regarding the potential long-term effects of a new U.S. tariff policy that imposes a 10% duty on Ghanaian exports, including cocoa. He warns that this measure, especially when contrasted with the tariff exemptions granted to neighboring Côte d’Ivoire, could significantly undermine Ghana’s trade competitiveness and economic stability.

In an interview on JoyNews’ PM Express Business Edition, Dr. Ayim-Darke emphasized the importance of viewing this development within a broader regional context. He cautioned that failing to adopt a coordinated approach with Côte d’Ivoire and other West African nations could lead to adverse economic consequences for Ghana.

Highlighting the potential risks of the U.S. tariff, Dr. Ayim-Darke noted that while a 10% duty might seem manageable in the short term, it could have unforeseen negative impacts in the future. He warned that such measures could erode Ghana’s competitive edge in international markets, particularly in the cocoa sector.

The 90-day grace period before the tariff takes effect is viewed by Dr. Ayim-Darke as a crucial opportunity for strategic planning and collaboration. He stressed the need for intensive consultations among government officials, industry stakeholders, and regional partners to develop a unified response to the tariff challenge.

Dr. Ayim-Darke also pointed out the broader economic implications of the tariff, particularly concerning Ghana’s fiscal health. He noted that disruptions in cocoa exports could lead to significant revenue shortfalls, complicating the government’s efforts to balance the national budget and maintain macroeconomic stability.

Beyond fiscal concerns, the AGI President addressed potential ripple effects on the financial sector and household economies. He explained that reduced export earnings could lead to tighter monetary policies, higher lending rates, currency depreciation, and a decline in remittances from the diaspora, further straining the domestic economy.

In conclusion, Dr. Ayim-Darke called for urgent and coordinated action to address the challenges posed by the U.S. tariff. He emphasized that Ghana must not view this issue in isolation but as part of a larger regional and global economic landscape. By working closely with Côte d’Ivoire and other West African nations, Ghana can better navigate the complexities of international trade and safeguard its economic interests.

This comprehensive approach, according to Dr. Ayim-Darke, is essential to mitigate the potential negative impacts of the U.S. tariff and to ensure the continued growth and stability of Ghana’s economy in the face of evolving global trade dynamics.