US Tariff Risks Could Hit Ghana Through Commodity Channel – Analyst warns
Economic Analyst Emmanuel Boateng has cautioned that renewed United States tariff measures could have serious implications for Ghana, particularly through global commodity markets and tightening financial conditions.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Boateng described the issue as “a very, very important question,” especially given Ghana’s dependence on global trade and commodity exports.
According to Mr. Boateng, Ghana has both direct and indirect exposure to the United States. While the country’s direct export exposure to the US is modest compared to economies such as Mexico or Vietnam, the indirect exposure is far more significant.
“If global trade slows due to these tariffs, China’s growth will slow further. Commodity demand is going to weaken because goods will become more expensive,” he explained.
He added that oil and coal prices would likely come under pressure in such a scenario, leaving Ghana vulnerable through what he described as the “commodity channel” rather than the manufacturing channel.
“Ghana is vulnerable through the commodity channel, not necessarily the manufacturing channel,” Boateng stated,
Mr. Boateng highlighted that while Ghana’s manufacturing base remains relatively limited, its reliance on commodity exports makes it highly sensitive to global price movements.
Beyond trade, he identified global uncertainty as the greater threat. Heightened uncertainty, he said, often leads to tighter financial conditions worldwide.
“Where there is uncertainty, risk premiums increase,” Boateng noted. “And once that happens, financial conditions tighten up. Your access to financing will be curtailed significantly.”
He warned that tighter global financial conditions could make borrowing more expensive and restrict access to capital for developing economies like Ghana, further complicating fiscal management and economic planning.
Mr. Boateng noted that policymakers must closely monitor global trade developments and strengthen economic resilience to cushion the country against external shocks stemming from tariff disputes and broader geopolitical tensions.
