President John Mahama has stressed the need for countries to abide by international trade regulations and not impose unilateral tariffs, cautioning that such actions threaten global prosperity.He made the point at the Jubilee house after receiving the credentials of the EU Ambassador to Ghana, Rune Skinnebach, referencing Ghana’s own encounter with U.S. export tariffs.

“We live in an increasingly changing world, and the world trade rules-based system is being upended by unilateral tariffs by various countries on others. Ghana, for instance, had the AGOA, which was zero-rated for exports into the United States. Today, we’ve been slapped with 15%. But it’s not only us; many other countries have suffered a worse fate than us. But we do believe that with regards to trade and tariffs, we must play by the rules. And it affects world prosperity when countries just decide unilaterally to impose tariffs on each other,” ” President Mahama said.

Updating the envoy on Ghana’s economic state, the president said, “Ghana is coming out of an economic crisis. We defaulted on our debts, and we went through a quite difficult debt restructuring exercise. Happily, we are coming back. The economy is stabilising. Inflation is coming down.”

"The currency is appreciating in value and being relatively stable. And we’re maintaining fiscal discipline that ensures that the economy is well managed. Aside from that, we’re also resetting our governance and introducing more accountability.”

Though the European Union Ambassador to Ghana, Rune Skinnebach, is new, he committed to closer engagement with Ghana on all fronts, including defence and security.

“I also see a very strong development in the partnership between the Republic of Ghana and the EU. I see our privileged position as a donor to the government, but also as a trading partner, as an investor.”

"I see these very important partnerships in security and defence, and most recently also in forest legislation enforcement, which all constitute platforms to further deepen our relationship,” Mr Skinnebach said.

He further underscored Ghana’s strong position on international issues.

“It hasn’t gone unnoticed that Ghana has been steadfast on the territorial integrity of Ukraine towards Russian aggression. That is very important to us in Europe.”

Later, President Mahama received the new UK High Commissioner to Ghana, Christian Rogg. The President noted that Ghana is working with ECOWAS and international partners to respond to violent extremism in the Sahel.

“We’ve developed a process of rapprochement with the AES countries, even though they have determined to break away from the regional sub-body. I think that there must be continuous engagement with them, because the threat they face is a common threat to our whole sub-region, not to them alone.

"The situation in those countries is quite grave, and we believe that Ghana, working with ECOWAS and the international community, must see how we can resolve the issue of violent extremism,” President Mahama said.

“We rely on cooperation with the UK. Already we have support in terms of training, technical expertise, and intelligence sharing, and we hope that will continue.”

The UK High Commissioner assured that security will remain central to Britain’s partnership with Ghana.

“The second priority is very much on security. The world really has changed… conflicts we never imagined are happening again in Europe, and what is happening in the region here is also very different,” Mr Rogg said.

“Over time, our partnership on security has evolved. That has to do with countering terrorism, with training, with intelligence, with equipment. But it also goes beyond that to threats we both face, such as illicit financial flows and the drugs trade. Security, just as growth, are quite broad and encompassing priorities we will work with your government on."

Meanwhile the President has lamented the United States (U.S) President Donald Trump’s refusal to allow the U.S Congress authority on tariff matters.

Speaking during his first presidential media encounter of his second term in office, he 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".

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, imposes 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 U.S. government explains that the new development forms part of the efforts to protect its economy, as the country buys more goods from other countries than it sells to them.

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.”

The policy is expected to impact Ghanaian goods entering the U.S. in the coming days, affecting 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.

The new tariff adjustment comes at a time when the Ghanaian government is implementing tax reforms to ensure the elimination of successive charges of taxation that increase the cost of goods and services.

Although the measure is premised on the principle of reciprocity, President Trump insisted in the executive order that the United States had been unfairly disadvantaged by trade barriers erected by other countries.

This policy affects numerous Ghanaian exports, notably those under the African Growth and Opportunity Act (AGOA), which previously allowed duty-free access to the U.S. market.

Ghanaian officials have criticized the move, arguing that the U.S. cannot claim the tariffs are to protect domestic industries. Ghana is not facing the issue in isolation; as such, the African Union and the African Continental Free Trade Area (AfCFTA) are coordinating a collective response.

Some African nations, such as Lesotho, could face import duties of up to 50 percent. The African Growth and Opportunity Act (AGOA), which was passed by the U.S. Congress in 2000 to provide duty-free access for African exports to the U.S. market, remains in effect but faces new scrutiny in light of the latest U.S. trade policy shift.

In 2022, two-way trade between AGOA members and the US exceeded $46 billion, with $13.5 billion more in imports than exports. That year, AGOA recipients exported $30 billion worth of goods to the US, of which $10.2 billion were sold under the duty-free AGOA preference.

However, with AGOA’s framework set to expire in September, there are growing concerns that the Trump administration’s stance may hinder any renewal.

The U.S. government in May announced a new 10% tariff on exports, but the then U.S. Ambassador to Ghana, Virginia Palmer, insisted that the new global tariff adjustments could benefit Ghana, unlike other countries.

In an interview with Citi News on Monday, May 26, she explained that the 10% tariff on exports to the U.S. is in favor of Ghana, as the nation's key exports, oil and gas, are not affected, as it is imposed on rival countries.

“There were 10% applied globally, which the new US administration has taken, that may in the short term [be] to Ghana’s advantage, vis-à-vis its competitors. Oil and gas, which is being [a] major exporter to the US, is not subject to the tariff. If Ghana faces a 10% tariff, Bangladesh and Vietnam face 47% and 63%,” she said.

According to her, Ghana is currently in a better position in the U.S. market as compared to 60 countries that are facing a much higher rate of the 10% imposed tax.

"There were 60 countries where tariffs were much higher than 10%, which may be an advantage for Ghana in the near term. I hope that Ghana will be the one making that point to the American legislature when it expires at the end of September [2025]," she added.

Virginia Palmer therefore urged the country's leadership to seize the advantage to persuade the U.S. government to renew a trade benefit before its expiry in September this year. She emphasized that Ghana remains a valued partner.

Trade analysts, on the other hand, suggest the U.S. is unintentionally nudging African countries toward deeper engagement with China.