'We need collective engagement' - AGI Boss urges national unity as U.S. tariffs threaten economy

The President of the Association of Ghana Industries (AGI) has called for unity. This is in response to the 10% tariff imposed by the United States on Ghanaian exports.

Dr. Humphrey Ayim-Darke emphasized that now is not the time for isolated decisions. He urged for “collective engagement” among government, industry, and regional partners.

Speaking on Joy News’ PM Express Business Edition, he highlighted the need for a strategic response. Emotional reactions could harm Ghana’s fragile export earnings and fiscal stability.

“We shouldn’t issue statements that might disrupt the system,” he cautioned. “We are studying this unfolding event.”

A 90-day pause in implementing the U.S. tariff provides some relief. Dr. Ayim-Darke stressed that this time must be used wisely.

“Without the 90-day pause, anxiety would be higher,” he said. “We are using this opportunity to consult with government and our counterparts.”

He advocated for a holistic national approach to address these challenges.

“It will help if we engage collectively,” he stated. He warned that disjointed responses could affect trade, inflation, and monetary policy.

Dr. Ayim-Darke pointed out what’s at stake for Ghana's economy.

“The Finance Minister knows he must balance his books carefully,” he said. “Domestic revenue largely depends on imports.”

He noted that about 50% of domestic revenue comes from ports and exports like cocoa.

However, the cocoa sector has already faced difficulties due to galamsey activities.

“Cocoa production has dropped because of these events,” he explained.

Dr. Ayim-Darke warned that failing to stabilize export markets like cocoa could have widespread effects on Ghana’s economy.

“Are you worried about uncertainty affecting fiscal revenue? Yes, it has ripple effects,” he said.

“If domestic build isn’t sufficient, more monetary policies will follow.” This cycle can impact lending rates and even affect the U.S. dollar trading medium.

He also expressed concern over how Ghana compares to Côte d’Ivoire under U.S. tariffs.

“We are worried about disparities between tariffs on Ghana and Ivory Coast,” he stated.

Both countries aim to harmonize their cocoa exports for farmers' benefits but face challenges with differing tariffs.

“This disparity could create long-term trade distortions,” he warned.

“What will be the impact on our trade?” he asked rhetorically about potential future consequences of current tariffs.

Dr. Ayim-Darke raised alarms about indirect effects of tariffs leading to inflation in the U.S., which may reduce remittances to Ghana.

“Remittances are crucial for our inflows,” he noted.

“If inflation rises in the U.S., disposable income decreases.” This reduction affects how much families receive from abroad and impacts government revenue too.

His conclusion was clear: Ghana cannot view this crisis in isolation.

“You cannot look at this in isolation,” he warned again.

“We need to consider both macroeconomic and microeconomic perspectives.”