By: Momodou Justice Darboe
Former US State Department official Mr. Musa Basad Jawara has stated that though Donald Trump’s 10% baseline tariff may not significantly impact Gambia’s export to the US, the Gambia’s policy-makers and economic operators should be concerned about the potential effects of the tariffs on advanced economies that provide budgetary support to The Gambia.
“These economies may face difficulties due to the US tariffs, which could indirectly affect The Gambia’s economy,” warned Mr. Jawara.
Jawara, an economist matriculated in Tokyo and Washington and earned high degrees, said The Gambia’s economy may face challenges due to a potential tariff- induced global trade war, which could possibly lead to a global recession.
“To mitigate this, Gambian economic operators should develop policy positions to address potential economic downturns, focussing on macroeconomic stabilization, structural reforms, and diversifying the economy,” he advised.
The US imposed a 10% tariff on The Gambia and other countries around the world doing trade with it. Trump argued that the US has long been ripped off by its trading partners and the time has now come to eliminate this trading imbalance. However, some experts believe that this tariff regime was introduced by Trump to force trading negotiations in favour of the US but it could degenerate into a global trade war and recession.
A leaked document entitled The Mal Al Lago Papers suggested that Trump is using the tariffs to weaken the masculinity of the dollar against other currencies to soar up the US export.
Be that as it may, Musa Basad Jawara has warned that the Gambia’s policy-makers and economic operators must be prepared for the potential domino effects of Trump’s tariffs on the economy.
awara, who served as an economist under the Jawara dispensation, highlighted that The Gambia’s economic challenges are exacerbated by the US withdrawal of aid and global tariff issues.
“The country faces poverty, underemployment, and reliance on low-value-added tourism, necessitating structural reforms and economic diversification,” he concluded.
