The newly announced 10% import tax by U.S. President Donald Trump is expected to have significant implications for Ghana’s trade balance, foreign exchange earnings, and the stability of the cedi.
This tariff, which targets Ghanaian goods entering the U.S., is part of a broader protectionist policy that also includes a 34% levy on Chinese imports and a 20% tariff on European Union goods.
Announcing the tariffs from the White House Rose Garden, President Trump justified the move as a means to correct long-standing economic imbalances.
“Our country has been looted, pillaged, raped, and plundered by other nations. Taxpayers have been ripped off for more than 50 years. But that will not happen anymore,” Trump declared, invoking the 1977 International Emergency Powers Act to bypass Congress and implement the tariffs unilaterally.
The imposition of a 10% import tax on Ghanaian goods means that products shipped to the U.S. will become more expensive, potentially reducing demand as buyers seek cheaper alternatives from untaxed markets.
This could lead to a decline in Ghanaian exports, weakening the country’s trade balance and affecting foreign exchange inflows.
In 2023, Ghana exported $1.74 billion worth of goods to the U.S., with key commodities including crude petroleum ($1.23 billion), cocoa beans ($154 million), and cocoa paste ($68.7 million). Over the past five years, Ghana’s exports to the U.S. had grown at an annualized rate of 22.7%, rising from $625 million in 2018 to $1.74 billion in 2023.
However, the newly imposed tariffs could disrupt this trajectory. With lower foreign exchange earnings, the Ghanaian cedi may come under renewed pressure.
The currency had already depreciated by 5.3% in the first quarter of 2025, with the Bank of Ghana reporting an exchange rate of GH¢15.53 to the U.S. dollar in March 2025.
Amid concerns over the impact of the tariff, Virginia Evelyn Palmer, the U.S. Ambassador to Ghana, has sought to reassure Ghanaian businesses, highlighting the strength of the trade relationship between the two nations.
“The life-saving programs are all to be continued. The new face of the partnership will maintain all of the life-saving programs. The U.S. and Ghana have a very warm, close relationship, as you all know, and that is founded on four pillars,” she stated.
Ambassador Palmer also emphasized the continued importance of Ghana’s exports, particularly in gold and gas, and suggested that these commodities would remain competitive in global trade despite the tariff hikes.
“We have the historical and cultural. Also, more than $3 billion in bilateral trade investment is one of the key pillars. There are also goods and services; gold coming from here, gas coming from here, and we have automobiles and pharmaceuticals coming from the United States. So, it is something that builds prosperity in all the countries. It is all to say that no matter what the changes in language and no matter the change in focus, Ghana is really an important part of the United States and we will continue to be so,” she added.
Trump’s aggressive trade policies have already sparked backlash from major trading partners. While Canada and Mexico remain exempt under the USMCA trade deal, China is facing additional 34% tariffs, with an extra 20% penalty on goods related to fentanyl production.
The European Union and other affected nations, including Ghana, are considering retaliatory measures, adding to growing economic uncertainty.
Ghanaian exporters may need to diversify their markets, looking toward Europe, China, and ECOWAS countries to mitigate potential losses from the U.S. market.
If the tariffs remain in place for an extended period, businesses reliant on U.S. trade may have to adjust supply chains, seek new buyers, or renegotiate trade agreements.
Before the tariff announcement, Ghana’s trade balance had been showing positive signs. The country recorded a trade surplus of $1.64 billion in the first two months of 2025, equivalent to 1.9% of GDP.
This surplus contributed to the buildup of foreign reserves, according to data from the Bank of Ghana.
Total exports had grown 50% year-on-year, reaching $4.3 billion, driven largely by strong gold and cocoa exports.
However, crude oil exports declined due to reduced production levels from Ghana’s three main operational oil fields. Imports also saw a 7.3% increase, reaching $2.7 billion.
With the new 10% import tax in place, Ghana’s ability to sustain its trade surplus could be compromised.
