Former Vice President of Ghana, Dr. Mahamudu Bawumia, has delivered a striking message to global leaders, cautioning against the over-reliance on tariffs as a solution to trade imbalances.
Speaking at the 2025 International Democrat Union (IDU) Forum in Brussels, Dr. Bawumia challenged the resurgence of protectionist trade policies in global economic strategy.
Responding to a panel question on how the weaponisation of trade is affecting African economies—particularly Ghana—Dr. Bawumia was direct and unflinching:
“The deficit is a macroeconomic problem, not a trade policy issue,” he said. “When investment exceeds savings, a trade deficit becomes inevitable. Trying to correct that through tariffs is simply misplaced policy.”
Dr. Bawumia further warned of the broader consequences of rising protectionism, highlighting the growing instability within global trade frameworks.
“The U.S. has raised its average tariff rate from 2.4% to 10%—the largest increase since 1943. This will not be without consequence,” he noted.
He pointed out that the current shifts in global alliances and trade behaviours are ushering in a new era of economic reorientation, particularly for African nations.
“The rules-based global order has been disrupted. Old alliances are no longer stable, and uncertainty now defines international relations. African countries will diversify based on what works best for them, while pursuing value addition and economic independence,” he stated.
Dr. Bawumia’s remarks resonated strongly with fellow panelists, many of whom acknowledged Africa’s need to pivot from raw material exports to industrialisation and intra-African trade.
He argued that Africa’s best chance at long-term economic resilience lies not in retaliatory trade measures, but in building strong, independent economies that are rooted in innovation, productivity, and diversification.
