01 May 2025
In March 2025, the US government have imposed tariffs over goods traded on certain countries, including Ghana. Many countries, especially those from Africa have severely criticized the move by the US Government to impose such tariffs on goods traded between the US and other countries. Most of these people argue that the tariffs imposed by the US government would pose economic challenges to countries, especially those that are less economically advanced, and would also make trade difficult for affected countries.
In as much as such statement are true, these people passing such analysis should also be mindful of the fact that, the US government, although an economically advanced country also face certain economic challenges as well. For example, when the COVID-19 pandemic happened in 2019, the US government like other countries whether developed or not, had to also spend many resources to combat the spread of the virus.
Again, the move by the US government to impose such tariffs on goods traded between them and other countries can be seen as part of Prez Donald Trump's anti-immgration polices to reduce immigrant entering into their country. In as much as immigration have its advantage, one of which is notably to drive innovation and invention into the country, too much immigration can drive down resources per capita for the people living in the country, thereby making them poorer, since the immigrant are also going to spend some of the resources meant for the citizens in the country.
Moreover, US is an export based nation, meaning they export more manufactured goods than they recieved primary imported products and that is also their main source of GDP growth. Excessive demand for their dollar makes their currency relatively stronger than other countries. As a result, the revenue they recieve in return for exporting their product to other countries may become less due to the weaker currencies of those other counrties given in return for the trade.
It is to my surprise that a continent that brags much about their cultural heritage and political independence have fallen short of economic independence. In the 21st century, African countries still rely on monies donated to them by European nations. What African countries must do is to use their resources in a productive efficient manner and in an allocatively efficient manner. In that way, we can become rich in our own without relying on external financial assistance.