Ghanaian businesses are set for a major boost as President John Mahama has announced the signing of a zero-tariff deal with China.

This follows an announcement by the Chinese government of its intention to offer zero tariffs to some fifty-three African countries that maintain diplomatic ties with the Asia superpower, which forms part of China’s broader push to position itself as Africa’s principal trade and investment partner amid escalating global trade tensions.

In a letter released on June 11 to African foreign ministers, Chinese President Xi Jinping said the zero-tariff policy aims to deepen China-Africa cooperation, promote modernisation across the continent, and support African countries in expanding their exports to China.

Speaking during a bilateral meeting (Global Leaders' Meeting on Women) at the Great Hall of the People in Beijing, October 13, President Mahama lauded China’s confidence in Africa.

“I’m pleased to inform you that we have reached an agreement in principle, and both sides have targeted the end of October to formally sign off on the zero-tariff framework.

China’s decision to grant zero-tariff access to Ghanaian and other African products signals strong confidence in the partnership between China and Africa,” he noted.

He highlighted that the initiative plays a major role in boosting export growth.

“The policy opens vast new markets for Ghanaian exporters, agro-processors, and manufacturers, creating fresh opportunities to expand trade and boost industrial growth,” he added.

At the same event, Chinese President Xi Jinping reflected on the long-standing relationship between China and Ghana, marking the 65th anniversary of diplomatic ties. He reaffirmed China’s commitment to supporting Ghana in building a modern economy. He expressed his outfit’s readiness to work with Ghana to deepen cooperation across all sectors and to make greater contributions toward building an all-weather China–Africa community with a shared future in the new era.

Xi emphasised that China and Ghana should jointly implement the outcomes of the Beijing Summit of the Forum on China-Africa Cooperation, explore diversified cooperation models and expand collaboration in mining, energy, infrastructure, agriculture and fisheries, thereby promoting high-quality development of bilateral cooperation. He said the two sides should also jointly uphold the Global Governance Initiative and work toward building a fairer and equitable global governance system.

Mahama said the Global Leaders' Meeting on Women is of great significance and demonstrates China's leadership in advancing the cause of women worldwide.

He affirmed that Ghana firmly adheres to the one-China principle and looks forward to strengthening cooperation with China in trade, digital economy, infrastructure, energy, mining and people-to-people exchanges.

His comments follow US President Donald Trump's increased tariffs on imports from African countries, which include Ghana. In a speech delivered on April 2, during Trump’s “Liberation Day” at the White House, the leader of 'Make America Great Again' announced a 15% tariff on goods entering the U.S., as part of his broader “reciprocal trade” agenda.

According to the Executive Order, “These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m.”

Speaking during his first presidential media encounter of his second term in office on September 10, President Mahama noted that the power to set tariffs lies significantly with the U.S Congress; however, President Donald Trump oversteps the boundaries.

“The power to impose tariffs is that of Congress, but in this case, the US president [Donald Trump] always pushes the limit,” President Mahama said.

According to him, African countries are under pressure due to the United States (U.S) President Donald Trump’s interest in quick deals rather than a long-term partnership. President Mahama stated that the U.S President’s recent trade policies have resulted in the “technical” collapse of the African Growth and Opportunity Act (AGOA).

He mentioned that “Countries like Africa enjoyed zero tariffs in the US because we were in the developing world. It was a concession that the US gave. In comes President Trump. He has a more transactional mindset.

"He says the US has been taken for granted for a long time so even countries like Ghana in Africa, he slapped a 15% tariff on us from a zero tariff".

“The power to impose tariffs is that of Congress, but in this case, the US president [Donald Trump] always pushes the limit,” President Mahama said.

According to him, African countries are under pressure due to the United States (U.S) President Donald Trump’s interest in quick deals rather than a long-term partnership. President Mahama stated that the U.S President’s recent trade policies have resulted in the “technical” collapse of the African Growth and Opportunity Act (AGOA).

He mentioned that “Countries like Africa enjoyed zero tariffs in the US because we were in the developing world. It was a concession that the US gave. In comes President Trump. He has a more transactional mindset.

"He says the US has been taken for granted for a long time so even countries like Ghana in Africa, he slapped a 15% tariff on us from a zero tariff".

AGOA was established to give certain African countries special trade access to the U.S. market. It was enacted on May 18, 2000 by the 106th United States Congress and signed into law by President Bill Clinton.

Although AGOA was initially set to expire in 2008, the U.S. has extended it multiple times, with the current extension running through 2025.

But President Mahama has emphasized that its renewal is uncertain following President Donald Trump’s steep tariff on goods exported to the U.S by African exporters.

"AGOA is technically dead. It was due for renegotiation in September, but there is no way with this 15% tariff, AGOA is going to be renewed. We are just watching carefully,” he added.

On Friday, July 31, imposed a fifteen percent (15%) ad valorem tariff on Ghana’s exports. This means that Ghanaian goods shipped to the U.S. will be charged a 15% tax based on their price. Thus, a product at $100 would be $115 as a result of the $15 tariff.

The policy is expected to impact many countries, including Nigeria, Zimbabwe, Zambia, Uganda, Mozambique, Mauritius, Malawi, Lesotho, and Madagascar.

Also, countries such as South Africa and Libya face a 30 percent tariff, while Tunisia will face a 25 percent steeper duty. Meanwhile, the Ghana Export Promotion Authority (GEPA) and Ghana’s Trade Ministry are yet to react to the new tariff.