The immediate past Finance Minister, Dr Mohammed Amin Adam, has dismissed suggestions for retaliatory tariffs on goods from the United States.
The US government, led by President Donald Trump, recently announced sweeping tariffs on several countries — 10% on Ghanaian goods, 34% on Chinese imports, and 20% on products from the European Union.
But according to the Karaga Member of Parliament, Ghana stands to suffer more if it decides to retaliate, citing the country’s heavy dependence on imported goods.
Speaking at the UPSA National Dialogue on Monday, 19 May, Dr Adam acknowledged that China has responded with countermeasures, but said Ghana should not follow that path.
“A reciprocal tariff on imports from the US will increase the cost of US exports to Ghana.
“Given the obsession in Ghana for imported products, this will reduce the disposable income of Ghanaians, thus leading to lower consumption and lower tax revenue,” he explained.
“Our total export to the US is about 2% of GDP, with non-exempt exports under the new US tariffs standing at 0.4%. The effect is therefore very limited, particularly on our international trade position, which has largely supported our recent recovery,” he added.
