Ghana Seeks U.S. Tariff Reprieve as Cocoa Exports Face 10% Levy
The Government has initiated high-level diplomatic efforts to secure an exemption from a 10% tariff imposed on its cocoa exports by the administration of U.S. President Donald Trump, as concerns mount over the potential economic impact on the world’s second-largest cocoa producer.
Deputy Trade Minister Sampson Ahi disclosed that President John Mahama has directed the Ministry to explore all possible avenues to overturn the tariff, which Accra views as unjustified.
Speaking on Joy News’ PM Express on Monday, Mr Ahi said: “President Mahama has tasked us to ensure every effort is made to address the issue of the Trump tariffs.”
The comments followed a meeting with the U.S. Ambassador to Ghana, Virginia Palmer, earlier in the day. The discussions were prompted by Washington’s decision to include cocoa—a commodity the U.S. does not produce domestically—on its revised tariff schedule.
Policy Under Scrutiny
The decision to impose duties on Ghanaian cocoa has raised questions over the rationale behind the move, given that U.S. trade protectionism is typically aimed at shielding domestic industries from foreign competition.
“If you want to impose tariffs to remain competitive, you do so on commodities where you have a domestic advantage,” Mr Ahi said. “The U.S. does not produce cocoa, yet it has imposed a 10% tariff on our exports.”
According to Mr Ahi, Ambassador Palmer expressed surprise at the inclusion of cocoa in the tariff framework and indicated that Ghana should push for an exemption through direct engagement with senior U.S. officials.
“She was surprised,” Mr Ahi said. “She believes that if we pursue this at a higher level, cocoa could be exempted from the 10% tariff.”
Regional Response and Economic Implications
Ghana is not mounting its challenge in isolation. The African Union (AU) and the African Continental Free Trade Area (AfCFTA) are coordinating a broader response, with trade ministers set to convene on April 14 to assess the impact of the tariff on African economies.
“We have agreed to address this collectively,” Mr Ahi said. “AfCFTA is organising a meeting with African trade ministers to formulate a response.”
Cocoa remains a cornerstone of Ghana’s economy, contributing around 3% to GDP and supporting the livelihoods of hundreds of thousands of farmers. A protracted trade dispute could weigh on Ghana’s export earnings and foreign exchange reserves, exacerbating existing macroeconomic pressures.
With President Mahama backing negotiations at the highest levels, the government is expected to intensify diplomatic efforts in the coming weeks. The outcome of discussions with U.S. trade officials and regional partners will determine the extent to which Ghana can mitigate the economic fallout from the tariff.
