Trump's 10% Tariffs: Economist warns of impact on countries with negative trade balances

Economist and finance lecturer at the University of Ghana Business School, Professor Lord Mensah, has emphasised the potential economic effects of President Donald Trump’s 10% tariff policy.

According to him, countries with negative trade balances, those that import more goods from the US than they export, will be largely affected by these tariffs.

President Donald Trump, on Wednesday, April 2, 2025, imposed far-reaching new tariffs on nearly all US trading partners.

China was slapped with a 34% tax on imports, 20% on the European market, among others that threaten to dismantle much of the architecture of the global economy and trigger broader trade wars.

In a post on his X page, as sighted by GhanaWeb Business, Prof Mensah indicated that nations with heavy reliance on US imports, and less capacity to offset those imports with their own exports to the US will face significant economic setbacks.

“Trump's 10% tariffs: Countries with negative trade balances with the US will suffer the most. That is, countries with more imports and fewer exports to the US will suffer the worst," he wrote.

The economist further advised affected nations to assess their trade dynamics with the US and find ways to adapt to the new trade environment.

“Just find your level,” Prof Mensah suggested on X.

By this, the finance lecturer wishes that such countries will alter their economic strategies to mitigate the effects of these tariffs.

Trumps 10% tariffs: Countries with negative trade balances with the US will suffer the most. That is, countries with more imports and fewer exports to the US will suffer the worst. Just find your level.

— The Prof (@ProfLordMensah) April 4, 2025