Tax Analyst, Francis Timore Boi has warned that the ongoing trade war between the United States and China could slow down Ghana’s economy.
According to him, a prolonged trade dispute may reduce demand for Ghanaian raw materials, affecting the country’s exports.
President Trump, in a recent address to the U.S. Congress, announced plans to increase tariffs on exports to Canada, Mexico, and China.
Speaking to Citi News, Timore Boi also noted that the trade tensions could push China to redirect its excess production to Africa, with Ghana becoming a key destination for cheaper Chinese goods.
“China and US, they trade among themselves in large quantity. If you look at the tariffs that they are talking about and these are huge amount of money so if China exports to US, US consumers are going to find it difficult importing because of the increasing tariffs and there is potential that Chinese producers may have excess production and when that happens they will have to find other markets for it and Africa in particular we normally like buying form China which means that we are likely to benefit.
“…We also export a little bit to China in particular, cashew nuts…If these Chinese people are using our raw materials to produce for the US market that can also create a little problem there.”
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