Cape Town – Trade, Industry, and Competition Minister Parks Tau has assured that South Africa will not retaliate against the new US tariffs but will engage diplomatically.
US President Donald Trump imposed a 10% universal tariff and a 30% tariff on South African exports.
Tau questioned how the US arrived at the 30% figure, as South Africa’s own calculations suggest it should be under 10%.
“We are all trying to work out how the US arrived at 60% discounted to 30% as the tariffs that we levied. In reality, our tariffs average on the basis of most favoured nations.
“Tariffs are estimated 7.6% and that’s our calculation. Of course, we are speculating what the US is calculating; this we assume could include the trade balance, could include other considerations.
[ON AIR] Minister of Trade, Industry and Competition, Parks Tau says he is committed to engage with the US to seek clarity over the 30% US tariffs imposed by Donald Trump. #eNCA #DStv403. pic.twitter.com/M4O1dInZYI
— eNCA (@eNCA) April 3, 2025
“But at this point, we’re going to need clarity from the US as to how they arrived at the number and how they would want to engage,” he said.
Tau was speaking on the sidelines of the Gauteng Investment Conference on Thursday.
The minister emphasised the importance of ongoing diplomatic discussions rather than retaliatory measures, aligning with President Cyril Ramaphosa’s stance.
“I think as indicated by the president, we are committed to engaging with the United States of America,” he said.
“I don’t think we should take a posture about retaliatory approach. I think we should take a posture that continues to engage with the us, a posture that continues to engage with trade partners on how we engage on a way forward.”
He warned of the severe impact on South Africa’s automotive sector, which exports R32 billion worth of cars and parts to the US.
The South African government plans a visit to the US to discuss the tariffs, delayed to fully assess the policy changes.
Tau also highlighted the need to diversify trade, particularly through the African Continental Free Trade Area (AfCFTA).
