Senator Amara Konneh of Gbarpolu County has raised concerns over the new trade policies announced by US President Donald Trump, which could have serious repercussions for Liberia’s economy. On April 2, 2025, Trump declared “Liberation Day,” marking a drastic shift towards protectionism with the introduction of reciprocal tariffs. This decision comes at a time when Liberia’s economy is already grappling with challenges, including a decline in rubber production, reduced US development assistance, and a strained fiscal environment.
The newly implemented 10% tariff on Liberia’s exports to the US represents a sharp increase from the previous 3.3% average tariff rate. Under the African Growth and Opportunity Act (AGOA), Liberia had enjoyed preferential treatment with duty-free access for rubber, diamonds, palm oil, and other key products. However, Trump’s latest move threatens to undermine these benefits, potentially shifting trade patterns and affecting Liberia’s already modest exports to the US, which in 2024 were valued at $72.5 million, primarily driven by rubber.
Senator Konneh points out that the tariffs, imposed without consideration of Liberia’s distinct economic circumstances, could further hinder the nation’s economic growth. Liberia’s GDP stood at $4.24 billion in 2024, with rubber exports amounting to $63.5 million. A decrease in rubber production, which fell by over 23% from 2021 to 2023, is already a significant obstacle for the country’s economy. The new tariffs could exacerbate the situation by making Liberian goods less competitive in the global market, while also undermining existing trade agreements that have fostered cooperation between Liberia and the US.
The ripple effects of Trump’s tariff policy are not just limited to the US; they could extend to Liberia’s other key trading partners, especially in Europe. Countries like Switzerland, the United Kingdom, and Germany are some of Liberia’s largest export markets, and even a slight increase in tariffs from these nations could destabilize Liberia’s fragile economy.
Domestically, the situation is equally dire. The United States’ reduction in aid, which had long supported essential sectors such as healthcare, education, and agriculture in Liberia, leaves a significant gap in the government’s ability to maintain vital services. In response, Liberia has already raised the Goods and Services Tax (GST) from 10% to 12% and introduced new charges on petroleum products to bolster revenue generation. While these measures may help address some of the fiscal challenges, they will likely lead to higher prices, placing additional pressure on households already struggling with high unemployment and low growth.
Senator Konneh emphasizes that Liberia must find alternative ways to adapt to this new global trade dynamic. The government needs to engage more effectively with major concessionaires like Arcelor Mittal and Ivanhoe International to review fiscal incentives granted to foreign companies operating in the country. By renegotiating these deals, Liberia could increase its share of the profits generated from its natural resources and improve the economic outlook for its citizens.
Looking forward, Senator Konneh remains cautiously optimistic that the government, in collaboration with its international partners, can navigate these economic complexities. As Liberia faces an uncertain future in light of changing global trade policies, the priority must be to pursue strategies that foster growth and prioritize the welfare of its people.
