Tariffs won’t fix trade deficits – Bawumia schools global leaders at Brussels Forum

Former Vice President of Ghana, Dr. Mahamudu Bawumia, addressed global leaders at the 2025 International Democrat Union (IDU) Forum in Brussels. He warned against relying too much on tariffs to fix trade imbalances.

Dr. Bawumia criticized the rise of protectionist trade policies in the global economy. He responded to a question about how trade weaponization affects African economies, especially Ghana.

He stated, “The deficit is a macroeconomic problem, not a trade policy issue.” He explained that when investment exceeds savings, a trade deficit is unavoidable. Using tariffs to correct this is misguided.

He also highlighted the dangers of rising protectionism and its impact on global trade stability. “The U.S. has raised its average tariff rate from 2.4% to 10%—the largest increase since 1943,” he noted.

Dr. Bawumia emphasized that shifts in global alliances are creating new economic dynamics for African nations. He said, “The rules-based global order has been disrupted.”

Old alliances are unstable, leading to uncertainty in international relations. African countries will seek diversification based on their needs while focusing on value addition and economic independence.

His comments resonated with other panelists who recognized Africa's need for industrialization and intra-African trade. Dr. Bawumia argued that Africa’s long-term resilience depends on building strong economies rooted in innovation and diversification, not retaliatory measures.