Business community downplays impact of Trump’s protectionist policies

The Ghana Union Traders Association (GUTA) has stated that it does not anticipate a significant impact on the business interests of its members due to Donald Trump’s recent re-election, despite his history of protectionist policies.

Trump’s return to the White House has raised questions across Africa, particularly given his “America First” stance and the implications this could have on trade relations with developing nations.

The United States remains a major aid donor to Africa, though China has rapidly become the continent’s largest trading partner.

In the first half of 2024, trade between China and Africa surpassed $166 billion, underscoring the competitive landscape between the U.S. and China in Africa.

During his first term, Trump launched the “Prosper Africa” initiative, aiming to boost U.S.-Africa trade and investment while countering China’s Belt and Road Initiative (BRI).

With support from various U.S. agencies, Prosper Africa provided American businesses with resources like market insights, financing, and deal support to foster economic growth and address the demands of Africa’s rising middle class.

However, Trump’s potential return to protectionist policies may pose challenges for African countries, as his administration could prioritize American businesses and limit trade access for foreign partners.

This shift could reduce opportunities for African economies, including Ghana, and potentially redirect U.S. investments inward, impacting trade dynamics across the continent.

Though the Prosper Africa initiative could help Ghanaian businesses, Trump’s protectionist approach and “America First” policy may cast uncertainty over future U.S.-Africa trade relations, especially as nations grapple with the competing interests of China and the U.S.

But speaking to Citi Business News on the sidelines of the 2024 Power and Energy Ghana Expo, the President of GUTA, Dr. Joseph Obeng indicated that GUTA does not expect a significant impact on local businesses under a Trump administration but rather looks to explore its competitive edge in dealing with the global superpower.

“We continue to do our business the best way that we know once we are not going against the norms of that country.

“It’s all about doing the right things and then getting the right attractions for yourself and also knowing what is to your advantage…you seek and exploit that because the candidature of Trump or otherwise will not make any difference when it comes to trading,” he said. – CITINEWS ROOM