Trump slaps 10% levy on imports from Ghana

The Trump administration has imposed a 10% baseline tax on imports from Ghana as part of their ambitious and controversial set of tariffs on imports from around the world into the US.

These sweeping taxes also included a 34% levy on imports from China and a 20% tax on goods from the European Union, signalling a dramatic intensification of global trade tensions. Already, there has been verbal tag of war between the US and its neighbours, Canada over some 25% taxes slapped on imports from Canada.

Speaking from the Rose Garden, Trump declared a national economic emergency, justifying the tariffs as a means to revitalise domestic manufacturing and end what he referred to as decades of economic exploitation by foreign nations.

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

The newly imposed tariffs, introduced without Congressional approval under the 1977 International Emergency Powers Act, target numerous countries with significant trade surpluses with the U.S.

Ghana, along with other affected nations, will be subjected to a 10% import tax across the board, adding pressure to global supply chains.

Meanwhile, imports from the US into Ghana also attract a 17% baseline tariff, which is still a seven percentage points higher than the new tariff Trump has imposed.

Again, Ghana’s access to the U.S. market under the African Growth and Opportunity Act (AGOA) was not directly affected by the new tax.

Economic Fallout and Recession Fears

The announcement has already sparked a sharp sell-off on U.S. stock markets as investors brace for an economic slowdown. Analysts predict that rising prices on essential goods such as housing, cars, and clothing will hurt both domestic and global economies.

Economists are concerned that the tariffs could usher in a global recession, with Olu Sonola of Fitch Ratings warning that the average U.S. tariff rate is set to rise from 2.5% in 2024 to 22%.

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

At the 123rd Monetary Policy Committee (MPC) press conference, the Governor of Bank of Ghana, Dr. Johnson Pandit Asiama said in the face of these measures by the Trump administration “what is important is for us to reduce our risk exposure that emanates from whatever actions the US will take and that is what is reflected in the various measures the MPC has put forward.”

Source: techfocus24.com