Former Vice President of Ghana, Dr Mahamudu Bawumia has cautioned that using tariffs to address trade deficits is a flawed approach, describing it as historically ineffective.

Speaking at the 2025 International Democracy Union Forum in Brussels, Dr Bawumia stressed that trade imbalances stem from deeper macroeconomic challenges and cannot be resolved through tariff measures.

“There are clearly trade imbalances across continents and countries, but what we know from economics is that you cannot fix a trade deficit with tariffs, it just doesn’t work. Tariffs cannot correct macroeconomic imbalances, and any attempt to do so is bound to fail, as history has shown,” he stated.

He further noted that ongoing trade wars, particularly between major economies such as the United States and China, are largely driven by mistrust.

“The biggest challenge in all these negotiations is mistrust,” he said, urging global leaders to prioritize building confidence and transparency in trade discussions.

Dr Bawumia’s remarks come at a time when global trade tensions have fueled a rise in protectionism, with several nations imposing tariffs to protect domestic industries.

The Brussels forum brought together leaders and policy experts from around the world to deliberate on critical global issues, including the evolving dynamics of international trade and ongoing trade wars.