U.S. tariff hikes will shift Africa toward self-reliance – Bawumia

Ghana's former Vice President, Dr. Mahamudu Bawumia, predicts a change in Africa’s trade. Rising global tariffs, especially from the United States, will impact export-reliant economies.

At the International Democrat Union (IDU) Forum, Dr. Bawumia discussed this trend. He believes protectionism will lead African countries to seek self-sufficiency and stronger regional ties.

He pointed out recent U.S. tariff hikes. The average tariff rate has risen from 2.4% to 10%. This is the largest increase since 1943 and will have significant effects.

Dr. Bawumia noted that Africa's trade with the U.S. is limited. Only 6.5% of exports and 4.4% of imports involve the United States. However, some countries are more vulnerable than others.

He highlighted Lesotho as an example. Lesotho sends about 50% of its exports, mainly textiles, to the U.S., benefiting from the African Growth and Opportunity Act (AGOA). With new tariffs, these benefits are at risk.

“AGOA is essentially going to collapse under these tariffs,” he warned. As a result, Dr. Bawumia expects a major shift in trade strategy across Africa.

African nations will increasingly look inward for solutions, he said. “You’re going to see more clamour for self-reliance,” he stated. There will also be more political support for intra-African trade as a response to these challenges.