The Executive Director of Revenue Mobilization Africa, Jeffery Ocansey, has expressed concerns about the implications of tariff measures imposed by U.S. President Donald Trump on Canada, Mexico, and China. Jeffery Ocansey noted that these tariffs are likely to significantly impact trade dynamics, particularly for African nations.
“Canada, Mexico, and China are largely affected by these tariffs,” he explained.
“China, in particular, has been known to push its goods through Africa, and the current situation may compel them to redirect their challenged goods through Africa and elsewhere. This could adversely affect intra-African trade and slow down the progress of the African Continental Free Trade Area (AfCTA).”
President Donald Trump launched a trade war Tuesday against America’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin as the U.S. faced the threat of rekindled inflation and paralyzing uncertainty for business.
Trump imposed 25% taxes, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy, while also doubling the tariff he slapped last month on Chinese products to 20%. Beijing retaliated with tariffs of up to 15% on a wide array of U.S. farm exports.
But while acknowledging the potential challenges, Jeffery Ocansey also pointed out opportunities that may arise from the situation.
He explained that “On the other side of the coin, there exists the opportunity for Africa to access raw materials essential for industrial growth, as well as machinery. However, this advantage can only be realized if costs are kept low. Many of these countries tend to sell at higher prices to Africa than they do among themselves.”
He emphasized the need for African nations to leverage their bargaining power in acquiring machinery for production and processing raw materials.
“If we can negotiate better deals for acquiring heavy-duty machines, we can enhance our production capabilities and optimize the processing of our raw materials”
“This moment presents a unique opportunity for us to take advantage of the situation” he opined in a note to metrotvonline.com.
By: Bright Yao Dzakah | Metrotvonline.com | Ghana
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