Former Finance Minister Dr. Mohammed Amin Adam has advised against Ghana imposing retaliatory tariffs on the United States, warning that such a move could harm the domestic economy and undermine recent progress in economic recovery.
His caution comes amid escalating global trade tensions triggered by the US government’s sweeping tariffs. These include a 10% tax on Ghanaian imports, a sharply reduced 30% tariff on Chinese goods (down from 145%), and a 20% tax on products from the European Union.
Speaking at the UPSA National Dialogue on Monday, May 19, 2025, Dr. Adam responded to growing calls for African countries to adopt reciprocal tariffs in response to the U.S. measures.
“Some countries, like China and Canada, have also imposed reciprocal tariffs on the US, and there are suggestions that African countries must follow suit. Should we do that?” he posed.
He explained that retaliating with similar tariffs would have limited benefits and could potentially backfire.
“From a tax revenue perspective, I do not encourage Ghana to retaliate for many reasons…Our total export to the US is about 2% of GDP, with the non-EXIM export under the US tariffs standing at 0.4%.
“The effect is therefore very limited on our international trading position which has largely supported our recent recovery,” he said.
Dr. Adam also warned that imposing reciprocal tariffs on US imports could negatively affect the Ghanaian consumer due to the country’s high reliance on imported goods.
“Also, a reciprocal tariff on imports from the US will increase the US’s exports to Ghana. Given the obsession in Ghana for imported products. This will reduce the disposable income of Ghanaians,” he added.
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