Ghana handed 90-day pause on 10% US tariff imposition

11-04-2025

Ghana handed 90-day pause on 10% US tariff imposition

Ghana has been given a 90-day pause on the recent 10 per cent tariff imposition by the US government following a retaliatory tariff imposed on some of its trading partners worldwide. 

Speaking on the new development, the Minister of Trade, Agribusiness and Industry (MoTAI), Elizabeth Ofosu-Adjare, said the 90-day period given Ghana last Wednesday would provide the country an opportunity to assess the full impact of the tariff and adopt various strategies to mitigate the immediate impact on the country’s trade and economy.

“All trading partners with the US have been placed in the 10 per cent tariff ban, with a 90-day pause for those within the reciprocal tariff to renegotiate a possible reduction, with the exception of China, which has been hit with 125 per cent tariff imposition”.

The minister was speaking at a stakeholder engagement on the recent imposition of a 10 per cent tariff on Ghanaian exports at the National AfCFTA Coordination Office in Accra yesterday.

The event, which was organised by MoTAI, was attended by representatives of industries in the export, manufacturing and investment sectors, as well as strategic agencies under the ministry.  

It aimed at exploring immediate and pragmatic steps to mitigate the impact of the tariffs on the industries.  

Mrs Ofosu-Adjare underscored the existing economic partnership between the two countries, describing it as “robust and multifaceted, with trade being a cornerstone of our relationship”.

She said that Ghana was one of the leading recipients of US Foreign Direct Investment (FDI) in the sub-region, and had played a significant role in driving economic growth and creating employment opportunities in the country.

“Between 1994 and 2024, the total wholly owned FDI inflow from the US to Ghana amounted to about $5 billion, covering 358 projects in sectors such as agriculture, manufacturing, building and construction, services and tourism,” the minister said.  

In reference to the Ghana Statistical Service’s (GSS) trade data for last year, she said Ghana exported GH¢294.9 billion worth of goods, while its imports amounted to GH¢250.2 billion, providing the country with a trade surplus of GH¢44.7 billion.  

Mrs Ofosu-Adjare added that trade between the two countries also resulted in a trade surplus in favour of Ghana last year, and constituted about 4.5 per cent of the nation’s total exports for last year.

“US imports from Ghana, according to the International Trade Centre, amounted to $1.21 billion with accompanying exports amounting to $967 million, translating into a total trade surplus of $244 million in favour of Ghana in 2024,” she said.  

Mrs Ofosu-Adjare said the tariff imposed on Ghana was based on last year’s trade surplus with the US. 

The minister said the government had held high-level diplomatic discussions with the US Ambassador to Ghana over some matters of concern.

She said subsequently, there had been some technical discussions between representatives of the two countries on the subject matter, confirming that “some key Ghanaian exports such as crude petroleum oils, bituminous mineral oils and natural rubber are exempt from the 10 per cent tariff imposition”. 

Mrs Ofosu-Adjare expressed the government’s commitment to implementing initiatives such as the Accelerated Export Development Programmes and Rapid Industrialisation for Jobs, as well as the 24-hour Economy policy to build resilience, boost production and improve market access.  

She urged African countries to pay more attention to the implementation of the African Continental Free Trade Area (AfCFTA) Agreement, which the minister said provided the best opportunities for market access drive.

The AfCFTA Secretariat is expected to host African Trade Ministers to deliberate on the tariff and trade issues.

The minister said that the government would capitalise on opportunities it offered and act decisively by strengthening its trade diplomacy to preserve preferential access where possible while also enhancing its investment promotion strategy.

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