Former Finance Minister, Dr. Mohammed Amin Adam, has cautioned Ghana against imposing retaliatory tariffs on the United States, warning that the move could damage the local economy and jeopardize recent gains in economic recovery.

His caution comes amid rising global trade tensions sparked by the U.S. government’s introduction of sweeping new tariffs.

These include a 10% tax on Ghanaian imports, a significantly reduced 30% tariff on Chinese goods, down from a previous 145% and a 20% tax on products from the European Union.

Speaking at the UPSA National Dialogue in Accra on Monday, May 19, 2025, Dr. Adam addressed increasing calls for African nations to respond with reciprocal trade measures.

“Some countries, like China and Canada, have also imposed reciprocal tariffs on the US, and there are suggestions that African countries must follow suit. Should we do that?” he posed.

While acknowledging the pressure for Africa to assert itself on the global stage, Dr. Adam cautioned that Ghana must prioritise its national economic interests and avoid reactive policies that could destabilize trade and growth.

He argued that retaliatory tariffs may have unintended consequences, including reduced investor confidence, trade disruptions, and higher costs for Ghanaian consumers and businesses.

“From a tax revenue perspective, I do not encourage Ghana to retaliate for many reasons…Our total export to the US is about 2% of GDP, with the non-EXIM export under the US tariffs standing at 0.4%.

“The effect is therefore very limited on our international trading position which has largely supported our recent recovery,” he said.

Dr. Adam’s comments come at a time when the country is showing signs of macroeconomic recovery, buoyed by currency stability, declining inflation, and improved fiscal discipline.

“Also, a reciprocal tariff on imports from the US will increase the US’s exports to Ghana. Given the obsession in Ghana for imported products. This will reduce the disposable income of Ghanaians,” he added.