The United States’ (US’s) 30% tariffs on South African exports took effect on Friday, 8 August.
This was two days after President Cyril Ramaphosa and his US counterpart, Donald Trump, held a telephonic discussion regarding bilateral trade matters.
The two leaders are expected to continue with further engagements, given the range of trade negotiations the US is currently involved in.
TARIFF IMPACT
The sectors hardest hit by Trump’s tariffs include manufacturing, citrus, wine, steel, automotive parts, agricultural processing, and textiles. However, the Presidency said trade negotiating teams from both countries will continue with more detailed discussions.
Some economists estimate the tariffs could shave 0.2% off South Africa’s economic growth, depending on factors such as the country’s ability to find alternative markets.
According to a joint media statement from the government, 35% of South African exports remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap, and energy products.
TRUMP CELEBRATES TARIFFS
The US president took to his Truth Social platform to express delight over the tariffs, claiming billions are flowing into the country.
“Tariffs are flowing into the USA at levels not thought even possible!” he said.
Trump also reiterated his long-standing view that the money is coming from countries that have “taken advantage” of the US. However, the South African government has previously pointed out that local companies help sustain American jobs.
“Our goal is to preserve and grow these mutually beneficial relationships,” the statement read.
The government also shared that it intends to keep trade channels open despite the latest setback.
SHOULD THE GOVERNMENT’S FOCUS NOW BE ON REPAIRING TRADE RELATIONS WITH THE US?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11.
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