International News: Trump ‘Chews’ Liberia

Liberia:With just one month in office, the 47^th President of the United States is having his eyes wide open not only to global issues but domestic as well, attempting to actualize his ‘America first’ policy.

On the domestic front, President Donald Trump is slicing America’s external financial aid to many countries including Liberia, its longstanding ally on the African Continent. Liberia has had a better part of America’s aid that enabled it address plethora of governance issues through US-AID whose operations have been put on freeze until further notice from the White House.

However, few days after Elon Musk who heads the new Department of Government Efficiency (DOGE) criticized the use of US taxpayers’ money to fund elections related matter in Liberia, President Trump has also weighed in on the issue, sharply questioning a $1.5 million allocation aimed at bolstering voter confidence in the 2023 elections.

President Trump at a public event Friday, chewed and derided the expenditure in a sarcastic remark.

“We want to give them confidence in Liberia,” as he dismissed broader U.S.-funded programs overseas.

There have been mounting concerns since the recent suspension of U.S. aid, an action that did not only disrupt critical development projects but also cast doubts on the country’s standing with the new Trump administration.

The situation has also drawn the Liberian government’s attention, expressing concerns about its far-reaching economic and governance implications.

Finance and Development Planning Minister Augustine Kpehe Ngafuan told the VOA recently the financial strain caused by the suspension, how it has derailed key reforms.

Minister Ngarfuan said: “This decision has affected our country in multiple ways, particularly in sectors where US-AID-backed initiatives were integral to our national development strategy.”

Recall that Liberia’s tax system reform, which had been backed by a $70 million US-AID initiative is affected by the suspension.

The essence of the program was to modernize revenue collection through a transition from a goods and services tax to a value-added tax (VAT) by 2026, while also investing in digital tax systems and capacity-building efforts.

Ngafuan noted that in response to the aid suspension, the Liberian Among the most affected programs is Liberia’s tax system reform, which had been backed by a $70 million US-AID initiative. The program was designed to modernize revenue collection through a transition from a goods and services tax to a value-added tax (VAT) by 2026, while also investing in digital tax systems and capacity-building efforts.

Ngafuan noted that in response to the aid suspension, the Liberian government tried to calm nerves, attempting to portray that the government has the wherewithal to weather the storm.

Amid the suspension of US aid, the Minister announced that the government is intensifying efforts to boost domestic revenue by strengthening tax administration and curbing financial inefficiencies.

“The executive branch is engaging with the legislature to assess both the immediate and long-term economic repercussions of the funding cut,” he told VOA.

The Country is finding other alternatives, according to the Finance Minister, to weather the storm. It includes reaching out to regional economic structures, such ECOWAS and the African Union, in a bid to secure funding sources to sustain key development programs.

The US president also criticized other U.S. foreign aid allocations in the tone of $21 million for voter turnout initiative in India.

He said India has a lot of money, one of the highest-taxing countries in the world when it comes to the US.

“We can hardly get in there because their tariffs are so high,” he said.

Other U.S. aid allocations condemned by President Trump include a $20 million grant for fiscal federalism in Nepal, a $19 million biodiversity conservation project in the same country, $14 million for social cohesion in Mali, $2.5 million for inclusive democracies in South Africa, and $47 million aimed at improving education outcomes in Asia.

“Asia’s doing very well,” he added, implying that American taxpayers should not be footing the bill for such initiatives.

There are widespread disruptions across multiple countries relying on American financial assistance since suspension of U.S. aid on January 20, 2025.

The suspension also caused furloughs of staff at the U.S. Agency for International Development (US-AID), affecting global humanitarian and development efforts.