World Tariffs by US Set to Encourage Local Consumption
Story By: Rebecca Okine
Economic Analyst Emmanuel Boateng has explained that the recent retaliatory tariffs imposed by the United States are likely to discourage the importation of foreign goods while encouraging local consumption.
Speaking on the Market Trends segment on the Business Breakfast on Zed 101.9 FM, Mr. Boateng shared his insights on how the tariffs, specifically the 10% levy placed on Ghana will affect both global trade and local production.
“The tariffs will increase the cost of imported goods, making them less competitive compared to local products. As a result, consumers will be more inclined to buy locally produced goods,” Mr. Boateng explained.
He emphasised that this shift will have a positive effect on job creation, noting that local production will require more labor, thus supporting employment.
“When you import goods, you are essentially contributing to unemployment in your country.” Mr. Boateng said. “Tariffs act as a way to reduce that by making foreign goods more expensive, which in turn encourages local production and job creation.”
Mr. Boateng further explained that these tariffs make foreign products less attractive by increasing their prices relative to locally manufactured goods. “The goal is to make imported products less competitive by raising their prices, which gives an advantage to goods made in Ghana,” he added.
Although Ghana has been impacted by the 10% tariff, Mr. Boateng clarified that the country is not among the worst-hit nations, as discussed in a recent press conference by the U.S. government.
“We’re not even among the 50 worst offenders in terms of trade relations, so the 10% tariff is relatively moderate compared to the higher tariffs imposed on other countries,” he said. Previously, Ghana’s exports to the U.S. may have benefited from preferential trade agreements like the African Growth and Opportunity Act (AGOA), but the new tariffs are set to make these exports more expensive, potentially affecting trade dynamics.
