United States of America (USA) President Donald Trump has announced sweeping tariff hikes, including a 10% import tax on goods from Ghana.

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The new measures, which also impose a 34% levy on Chinese imports and a 20% tariff on European Union goods, mark a significant escalation in trade tensions.

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Speaking from the Rose Garden, Trump framed the tariffs as a necessary response to decades of economic imbalance, declaring a national economic emergency.

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"Our country has been looted, pillaged, raped, and plundered by other nations," Trump asserted. "Taxpayers have been ripped off for more than 50 years. But that will not happen anymore."

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Invoking the 1977 International Emergency Powers Act, Trump bypassed Congress to implement the tariffs unilaterally. Countries with large trade surpluses with the U.S., including Ghana, will face a uniform 10% import tax, a move that could disrupt supply chains and economic relations worldwide.

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The announcement has already triggered turmoil in financial markets, with investors anticipating inflationary pressures and an economic slowdown. Analysts warn that higher import costs on essential goods—ranging from automobiles to textiles—could have ripple effects across industries.

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Olu Sonola of Fitch Ratings cautioned that the average U.S. tariff rate will surge from 2.5% in 2024 to 22%, heightening fears of a global downturn.

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"Many countries will likely fall into a recession," Sonola warned. "If these tariff levels remain for an extended period, most economic forecasts will need to be revised drastically."

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Economists have drawn comparisons between Trump’s tariffs and the notorious Smoot-Hawley Tariff Act of 1930, which deepened the Great Depression by igniting a worldwide trade war.

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Trade analysts Scott Lincicome and Colin Grabow of the Cato Institute have cautioned that history could repeat itself.

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"With today’s announcement, U.S. tariffs will reach levels not seen since the Smoot-Hawley Act, which contributed to the global economic downturn during the Great Depression," they noted.

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Trump’s aggressive trade strategy has sparked backlash from key trading partners, many of whom are preparing countermeasures. While Canada and Mexico remain exempt under the USMCA trade deal, China faces compounded tariffs, including a 34% general tax and a 20% penalty related to fentanyl production.

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The European Union and other affected nations, including Ghana, are expected to respond with retaliatory tariffs, further fueling economic uncertainty.

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Despite opposition from lawmakers—particularly those representing U.S. agricultural and industrial sectors—the White House has shown no signs of reversing course. Trump remains defiant, insisting that the tariffs will generate significant revenue and restore fairness in global trade.

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As developing economies like Ghana brace for the economic fallout, concerns grow over the long-term impact of these policies on trade-dependent nations.

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Ghana's trade balance as of February 2025

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Ghana’s Gross International Reserves reached $9.4 billion by the end of February 2025, aligning with the target set by the International Monetary Fund (IMF), data from the Bank of Ghana (BoG) reveals.

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This level of reserves was sufficient to cover 4.2 months of imports, reflecting an increase from $8.89 billion in December 2024, which covered four months.

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The country recorded a trade surplus of $1.64 billion in the first two months of 2025, equivalent to 1.9% of GDP. The surplus played a crucial role in the steady buildup of foreign reserves.

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Total exports experienced significant year-on-year growth of 50.0%, reaching $4.3 billion. This was largely driven by rising gold and cocoa exports, supported by increasing prices and higher production volumes.

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However, crude oil exports declined due to reduced output from Ghana’s three operational oil fields. Imports also recorded a 7.3% year-on-year increase, amounting to $2.7 billion.

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Ghana’s key export commodities showed mixed performances in the global market in early 2025.

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