Tariff war with US not in Ghana’s interest – Amin Adam

Former Finance Minister Dr. Mohammed Amin Adam has advised against Ghana imposing retaliatory tariffs on the United States. He warned that such a move could harm the domestic economy. It may also undermine recent progress in economic recovery.

His caution comes amid rising global trade tensions. The US government has imposed sweeping tariffs, including a 10% tax on Ghanaian imports. There is also a sharply reduced 30% tariff on Chinese goods and a 20% tax on products from the European Union.

Dr. Adam spoke at the UPSA National Dialogue on May 19, 2025. He responded to calls for African countries to adopt reciprocal tariffs against the US. “Some countries, like China and Canada, have imposed reciprocal tariffs,” he noted.

He questioned whether African countries should follow suit. Dr. Adam explained that retaliating with similar tariffs would have limited benefits and could backfire.

“From a tax revenue perspective, I do not encourage Ghana to retaliate,” he said. He highlighted that Ghana's total export to the US is about 2% of GDP. Non-EXIM exports under US tariffs stand at only 0.4%.

The impact of these tariffs is therefore very limited on Ghana’s trading position, which supports recovery efforts. Dr. Adam also warned that reciprocal tariffs could hurt Ghanaian consumers due to reliance on imports.

“A reciprocal tariff will increase US exports to Ghana,” he added. This situation could reduce disposable income for Ghanaians who prefer imported products.