Tag: U.S.A. TARIFFS

ON SEVERAL FINANCIAL PLATFORMS IT IS REPORTED RECENTLY THAT MORE AND MORE COUNTRIES ;EAVE THE US-DOLLAR WHEN TRADING WITH OTHER COUNTRIES AND CHOOSE THE CHINESE RENMINBI OR THE SWISS FRANC INSTEAD.

THE REASON FOR THAT IS MAINLY THE TARIFFS POLICY OF THE TRUMPADMINISTRATION AND THE GLOBAL ECONOMIC UNCERTAINTY WHICH ORIGINATES FROM THE US-AMERICAN ECONOMIC POLICIES.

FURTHERMORE, THE TRUMP ADMINISTRATION USES TARIFFS TO PUT POLITICAL PRESSURE ON OTHER COUNTRIES. EXAMPLES FOR THAT ARE INDIA, WHICH WAS PUNISHED BY HIGHER TARIFFS FOR BUYING OIL FROM RUSSIA, BRAZIL, FOR TAKING BOLSONARO TO COURT, THE FORMER PRESIDENT OF BRAZIL AND TRUMP ASSOCIATE, AND QUITE RECENTLY MEXICO WHICH WAS FORCED TO RAISE TARIFFS FOR COUNTRIES IT DOES NOT HAVE TRADE AGREEMENTS WITH. THE TRUMP ADMINISTRATION REPORTEDLY FORCED THE MEXICAN GOVERNMENT TO ALIGN ITS TARIFFS POLICIES WITH THAT OF THE UNITED STATES; IF NOT, MEXICO WILL BE PUNISHED ECONOMICALLY.

NO WONDER THEN THAT MORE AND MORE COUNTRIES ARE TRYING TO AVOID THE US-DOLLAR, AND ARE LOOKING FOR MORE RELIABLE AND STEADFAST CURRENCIES TO TRADE WITH. THEY CAN’T CHOOSE THE EURO, AS THIS CURRENCY IS ECONOMICALLY AND POLITICALLY TOO CONNECTED TO THE US-DOLLAR. TO PROVE THAT, WE ONLY NEED TO LOOK AT THE OUTCOME OF THE US-EU TARIFF NEGOTIATIONS, AT THE END OF WHICH = ACCORDING TO THE MAJORIT OF BUSINESS EXECUTIVES IN EUROPR – THE EU HAD EEN RIPPED OFF.

THE SWISS FRANC IS AN ALTERNATIVE, BECAUSE SINCE DECADES, IT IS A STRONG CURRENCY WITH NOT MUCH FLUCTUATION; THEREFORE, TRADE PARTNERS ARE SURE WHICH CONDITIONS THEY WILL HAVE WHEN THEY USE THE SWISS FRANC AS ATRADING CURREBCY.

THE CHINESE RENMINBI, ON THE OTHER HAND, BENEFITS FROM THE FACT THAT THERE IS A STRONG AND RELIABLE ECONOMY BEHIND IT WITH A RELIABLE TRADING PARTNER – CHINA. THE CHINESE GOVERMENT DOES NOT MIND THE KIND OF GOVERNMENT IT IS TRADING WITH, AS LONG AS BOTH COUNTRIES BENEFIT FROM THE ARRANGEMENTS. ALSO, THE CHINESE ECONOMY – DESPITE CHALLENGES AND ATTEMPTS OF MAINLY THE U.S.A. TO DAMAGE IT – IS ROBUST AND FUTURE-ORIENTED. WHAT CHINA HAS ACHIEVED IN THE LAST 80 YEARS IS REMARKABLE, AND A LOT OF ALSO AFRICAN COUNTRIES SEEK THE COOPERATION WITH CHINA TO BENEFIT FROM THE CHINA’S EXPERIENCE.

THE GHANAIAN GOVERNMENTS FROM BOTH SIDES OF THE POLITICAL SPECTRUM HAVE ALSO REALISED IT; THE NPP GOVERMENT BY JOINING THE BELT-AND-ROAD INITIATIVE IN 2018, AND THE CURRENT NDC GOVERNMENT BY ORGANISING THE GHANA-CHINA BUSINESS SUMMIT IN JUNE 2025.

NOW THE TIME HAS COME FOR GHANA AND OTHER AFRICAN COUNTRIES TO INTENSIFY THE ECONOMICAL AND POLITICAL CONTACTS WITH CHIMA, AND TO JOIN THE GROWING NUMBER OF COUNTRIES THAT DISTANCE THEMSEELVES FROM AN ECONOMICALLY AND POLITTICALLY CHAOTTIC UNITED STATES OF AMERICA.

A FEEDBACK FOR AND DISCUSSON CONCERING THIS ARTICLE IS VERY MUCH WELCOME.

SINCE YESTERDAY, 7TH OF AUGUST 2025, THE U.S.A. HAVE IMPOSED A 15% TARIFF ON ALL GOODS IMPORTED FROM GHANA. WITH THAQT, GHANA IS PART OF A GROUP OF 15 AFRICAN NATIONS ON WHICH A TARIFF OF 15%z IS IMPLEMENTED,

GHANA HAS A TRADE SURPLUS WITH THE U.S.A., AND THAT MIGHT BE THE REASON WHY THE TARIFF WAS PUT ON GHANA. THE TRADE SURPLUS AMOUNTS TO 19 MILLION US-DOLLARS IN FAVOUR OF GHANA. IN MAY 2025, GHANA EXPORTED GOODS WORTH 108 MILLION US-DOLLARS TO THE U.S.A, WGILE THE COUNTRY IMPORTED GOODS WORTH 88.6 MILLION US-DOLLARS FROM THE U.S.A.

GHANA MAINLY EXPORTS COCOA BEANS, COCOA PASTE AND COCOA POWDER TO THE U.S.A. IT IS INTERESTING TO NOTE THAT THE EXPORT OF COCOA BEANS IS 8 TIMES AS HIGH AS THE EXPORT OF COCOA PASTE AND COCOA POWDER TOGETHER, BUT THIS IS THE SUBJEDT FOR A DIFFERENT ARTICLE (MARCH 2025; SOURCE: BING CO-PILOT).

AS THE U.S.A. TARIFFS ON COTE D’IVOIRE – ANOTHER BIG COCOA PRODUCER ARE ALSO 15%, THE TARIFFS WOULDN’T MAKE MUCH DIFFERENCE IN THE PRICE FOR COCOA AND COCOA PRODUCTS FROM BOTH COUNTRIES. AND AS THE U.S.A WILL HARDLY BE ABLE TO GROW COCOA IN THEIR COUNTRY, THE OTHER ARGUMENT OF THE TRUMP ADMINISTRATION THAT PRDUCTION OF GOODS SHOULD BE BROUGHT BACK TO THE COUNTRY DOES ALSO NOT APPLY TO COCOA.

THEREFORE, THE IMPLEMENTATION OF TARIFFS ON COUNTRIES – AND ESPECIALLY AFRICAN COUNTRIES – IS A GENERAL PROBLEM. TRUMP’S ADMINISTRATION TRIES TO “CONQUER” COUNTRIES THROUGH THE IMPLEMENTATION OF TARIFFS. WHAT OTHER COUNTRIES TRY TO ACHIEVE BY MILI TARY FORCE, TRUMP’S ADMINISTRATION TRIES THE ECONOMY WAY.  GOOD EXAMPLES FOR THAT ARE BRAZIL, WHERE TRUMP TRIES TO PUNISH THE CURRENT ADMINISTRATION FOR TAKING THE FORMER PRESIDENT TO COURT, AND INDIA FOR BUYING OIL FROM RUSSIA. FURTHERMORE, BOTH COUNTRIES ARE PUNISHED FOR BEING MEMBERS OF THE BRICS ORGANISATION.

AS TRUMP’S POLICIES ARE UNPREDICTABLE. THE ONLY THING WE CAN SAY IS THAT HE ALWAYS CHANGES HIS POLICIES WHEN HE THINKS THAT IT SERVES HIS OWN INTERESTS BETTER. THEREFORE, THE U.S.A. APPEAR UNRELIABLE AS A TRADING PARTNER, ESPECIALLY FOR AFRICAN COUNTRIES.

ON THE OTHER HAND, CHINA APPEARS TO BE AN ALTERNATIVE AS A TRADING PARTNER. GHANA HAS ALREADY JOINED THE BELT-AND-ROAD INIATIVE IN 2018, AND UNTIL NOW, THE COOPERATION OF GHANA WITH CHINA IS ONLY OF ADVANTAGE FOR GHANATHE COPERATIN WITH CHINA IS FOR OTHER AFRICAN COUNTRIES. 

ALSO, A MEMBERSHIP OR AT LEAST AN OBSERVER STATUS IN THE BRICS ORGANISATION SHOULD NOT BE LEFT OUT OF SIGHT. THIS ORGANISATION OFFERS FINANCIAL AND TRADE ADVANTAGES WHICH ARE ESPECIALLY NECESSARY FOR AFRICAN COUNTRIES. ALREADY SOME AFRICAN COUNTRIES LIKE ETHIOPIA HAVE JOINED THE BRICS ORGANISATIN. EVEN THE AFRICA UNION AS AN ORGANISATION SHOULD TAKE A COOPERATION WITH THE BRICS COUNTRIES INTO CONSIDERATION.

LAST BUT NOT LEAST, AFRICA INCLUDED GHANA SHOULD TAKE ADVANTAGE OF THEIR OWN “INVENTION”, THE AFRICA CONTINENTAL FREE TRADE AREA. THE DEVELOPMENT OF THE INTER-AFRICAN TRAFE WOULD GIVE THE 54 COUNTRIES A GOOD CHANCE TO BECOME AT LEAST MORE INDEPENDENT FROM EXTERNAL UNPREDICTABILITIES WHICH THE U.S.A. HAVE TO OFFER.