For years, Ghanaian exporters have enjoyed duty-free access to the U.S. market, shipping everything from automobiles and textiles to palm oil and woven baskets under the African Growth and Opportunities Act (AGOA). But with the agreement set to expire in September 2025, and new U.S. tariffs taking effect, the future of this vital trade relationship is now uncertain.
International trade expert Maame Awinador-Kanyirige is urging Ghana and other African nations to act swiftly, either by negotiating new bilateral trade deals with the U.S. or by exploring alternative markets in Asia, Europe, and the Middle East.
She stressed that failure to do so could result in significant economic setbacks for industries that have long depended on the AGOA for access to the U.S. market.
Speaking in an interview with the BBC, Awinador-Kanyirige noted that AGOA, faces an uncertain future. The agreement, which has allowed African countries to export over 1,800 products duty-free to the U.S., has significantly boosted trade. Ghana, for instance, saw its trade volume with the U.S. increase from $300 million in 2000 to over $2 billion in 2023. However, there are growing concerns that the U.S. government under Donald Trump may not renew it.
Trump has consistently favored bilateral trade deals over multilateral agreements, signaling a policy shift that could leave African countries vulnerable. Nations like Kenya and Lesotho, which rely heavily on AGOA, could suffer severe disruptions if a new trade framework is not secured. Ghana, which exports automobiles, textiles, woven baskets, and palm oil under AGOA, is also at risk.
Adding to these challenges, Trump has declared new tariffs on all goods exported to America, impacting some 20 African countries. While some nations escaped major increases, others now face steep tariff hikes. South Africa, for example, was hit with a 30% tariff on vehicle exports, significantly raising costs. Nigeria, which exports crude petroleum, petroleum gas, beans, and oilseeds, must now pay a 14% tariff. Meanwhile, Lesotho and Madagascar are subject to tariffs as high as 50% and 40%, respectively.
Under AGOA, African nations had been exempt from these taxes, allowing them to export goods at competitive prices. A country like South Africa could previously sell cars and car parts to the U.S. cheaply, but with new tariffs in place, export costs have surged. The policy shift threatens industries that have benefited from duty-free trade, forcing African countries to rethink their trade strategies.
Awinador-Kanyirige stressed that African governments must act fast—either by negotiating new bilateral trade deals with the U.S. or by diversifying into other global markets.
Meanwhile, the Minority in Ghana’s Parliament is demanding that local manufacturers and exporters be cushioned in the wake of the ongoing international trade war that has seen a 10% tariff imposition on Ghanaian products to the United States market.
The Minority called for trade diversification measures focusing on the African Continental Free Trade Area (AfCFTA) and an enhanced diplomatic engagement with the United States government to review or abolish the 10% trade tariff.
