Former Ghanaian Vice President Dr. Mahamudu Bawumia has cautioned against reliance on tariffs to resolve trade imbalances, labeling the approach historically ineffective and counterproductive.
Speaking at the 2025 International Democracy Union Forum in Brussels, Bawumia argued that such imbalances stem from deeper macroeconomic issues rather than trade policy alone.
“Tariffs cannot fix macroeconomic imbalances, and any attempt to do so is bound to fail, as history has shown,” Bawumia stated in a Facebook post following his address. He emphasized that ongoing trade tensions, particularly between the U.S. and China, are exacerbated by a climate of “Mutually Assured Suspicion,” which undermines negotiations and stifles cooperation.
The forum, attended by global conservative leaders and policy experts, focused on shifting dynamics in international trade amid rising protectionism. Bawumia urged nations to prioritize trust-building and transparency over adversarial measures. “The biggest challenge to all these negotiations is mistrust,” he said, advocating for a rules-based system to foster collaborative solutions.
His remarks come as escalating tariffs and trade barriers threaten global economic stability. Bawumia’s critique aligns with broader concerns about the ripple effects of protectionist policies, which risk deepening inequalities and disrupting supply chains.
While acknowledging the political appeal of tariffs for shielding domestic industries, Bawumia warned that such measures often ignore systemic economic vulnerabilities. “Trade wars are symptoms of deeper fiscal and monetary imbalances,” he noted, calling for multilateral reforms to address root causes like currency mismanagement and fiscal deficits.
The speech underscores Ghana’s role in advocating for equitable global trade frameworks, particularly as developing economies grapple with the fallout of major-power rivalries.
