Ghana laughs off Trump’s ‘Liberation Day’ tariffs

In Ghana, life goes on as usual. People straighten their Woodin shirts and enjoy fufu.

On April 2, the Trump administration announced a new tariff. They proposed a 10% duty on goods exported to the U.S. This affects many countries, including Ghana.

The tariffs were dubbed ‘Liberation Day’ tariffs. Critics argue it’s more like ‘Liberation from Common Sense.’

Ghana was not singled out for high rates or insults about jollof rice. The same 10% rate applies to all countries, including Ghana.

Some countries face higher tariffs: South Africa at 30%, Ivory Coast at 21%, and Nigeria at 14%. Surprisingly, Ghana received the lowest proposed tariff among African nations.

At a flat 10%, Ghana's import duty is relatively low. President Trump did not impose harsher rates because of our polite trading practices.

Let’s look at some numbers:

- Ghana’s total exports in 2023: $25.99 billion.
- Exports to the USA: $1.74 billion (6.69% of total).
- Crude petroleum makes up 70.7% of U.S.-bound exports.
- Ironically, crude oil is exempt from the new tariff.

Are we worried about the 10% on non-oil products? Not really! Non-crude goods sent to the U.S. total about $508.6 million (1.96% of exports).

Cocoa will also face the 10% levy, but demand remains strong globally. Chocolate lovers are unlikely to stop buying chocolate due to price increases.

Europe is the largest consumer of Ghanaian cocoa beans and loves chocolate despite rising prices. Even with a price hike of 12%-15%, sales in Europe barely dipped.

Cocoa supply is limited worldwide; new plantations can't be created overnight. Americans will continue buying cocoa products from Ghana regardless.

Currently, these ‘Liberation Day’ tariffs are suspended for 90 days. This pause suggests that trade wars may not be wise right now.

Even if tariffs return after this period, their impact on Ghana's economy will likely be minimal. With oil exempt and cocoa thriving, we remain optimistic.

Ghanaians can keep calm and carry on with business as usual despite headlines about tariffs. Exporters can enjoy their kooko while laughing off concerns.

Our advice? Keep farming, drilling, shipping, and maintain your sense of humor! When faced with challenges like ‘Liberation Day’ tariffs, just dance to some Fameye music and wait for things to settle down!