The Importers and Exporters Association of Ghana has issued a press statement expressing significant concern over the recent decision by the United States government to impose a 10% tariff increase on imports from Ghana.
The Association in a press statement issued on Friday, April 4, strongly condemned the move, calling it a disregard for the protocols and principles of the World Trade Organization (WTO), and warned that it will have severe consequences for Ghana’s economy.
The new tariff hike, which was introduced under President Donald Trump’s administration, is expected to create substantial challenges for Ghanaian businesses.
As the statement outlines, one of the most immediate impacts will be on exports, with the increased tariff making Ghanaian products “less competitive” in the U.S. market.
This could lead to a “drop in demand and revenue” for Ghanaian exporters, potentially leading to a loss of jobs within the sector and exacerbating income inequality across the country.
The Association expressed concerns about the broader economic implications. A decline in exports could result in increased financial instability, with the potential for banks to raise interest rates in response to the economic strain.
This would make credit more expensive for businesses and individuals, further compounding the difficulties faced by the economy.
Moreover, the combination of reduced exports and sustained imports could worsen Ghana’s trade deficit, putting additional pressure on the national economy. Ultimately, these factors could lead to a slowdown in economic growth, impacting national revenue and development.
In response to these challenges, the Importers and Exporters Association of Ghana is calling on the Ministry of Trade, Agribusiness, and Industry, as well as the Ministry of Foreign Affairs and Regional Integration, to engage with relevant stakeholders in an urgent dialogue.
The Association urges the Ghanaian government to explore potential measures to mitigate the impact of the tariff hike, including diplomatic efforts to encourage the United States government to reconsider the policy.
Additionally, they are appealing for the implementation of relief measures to support the exporting community, such as incentives for businesses and entrepreneurs struggling under the new tariff burden.
The statement concludes with a call for solidarity among Ghanaian businesses, as the Association pledges to stand with exporters and the broader business community during these challenging times. It is clear that urgent action is needed to address this issue and protect the economic interests of Ghana.
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Source: JoyNews
