A looming 10% tariff on garments exported from Ghana to the United States is expected to deal a heavy blow to the country’s textile and apparel industry, with major players like DTRT Apparel bracing for significant disruptions.
Bright Simons, Honorary Vice President of IMANI Africa, raised the alarm in a recent post on social media platform X (formerly Twitter), drawing attention to the sector’s growing vulnerability. He singled out DTRT Apparel—a leading manufacturer employing over 5,600 Ghanaians—as particularly exposed. The company produces approximately 50,000 garments daily, with nearly half destined for the US market.
“A 10% tariff could upend the business model of companies like DTRT that rely heavily on duty-free access to remain competitive,” Simons noted, warning of potential job losses and reduced export earnings if swift interventions are not made.
The development raises concerns about the future of Ghana’s participation in the US market under trade frameworks such as the African Growth and Opportunity Act (AGOA), which currently allows eligible African countries to export goods to the US duty-free.
“While a 10% baseline tariff is concerning, the real impact hinges on how the U.S. treats apparel imports from competitor regions like Asia, Latin America, and the Caribbean,” Simons noted.AGOA’s expiration would thrust DTRT into a high-stakes trade arena, where pricing advantages could quickly erode.
DTRT’s business model is emblematic of a larger African strategy to capitalize on shifting global supply chains. Founded by former Hong Kong garment industry insiders, the company strategically moved operations to Ghana as U.S.-China trade tensions deepened and AGOA benefits beckoned.
“For years, Ghana was perceived as a safe AGOA partner, thanks to its political stability and governance record,” Simons remarked. He also emphasized that Ghana’s relatively swift two-to-three-week shipping time to U.S. ports offers a logistical edge over Asian competitors, where supply routes can stretch up to eight weeks.
Simons also touched on what he calls the “shadow Chinese” phenomenon—a wave of African garment firms built on the expertise and networks of former Chinese or Hong Kong-based apparel veterans. These firms aimed to sidestep tariffs aimed at China while leveraging Africa’s preferential trade access.
But without AGOA, the entire model is threatened. “Losing AGOA could dislodge Ghana’s growing apparel sector from its fragile footing,” Simons warned, calling on policymakers to urgently engage U.S. counterparts and solidify Ghana’s continued participation in the trade pact.
As global trade winds shift and Washington recalibrates its import strategy, Ghana’s place in the international garment market hangs in the balance. For companies like DTRT, the stakes are existential. And for Ghana’s wider manufacturing ambitions, this is more than a tariff—it’s a test of resilience in an increasingly protectionist world economy.
