SA concerned over Trump’s 30% tariff, pushes for urgent US trade talks!

Trump

Cape Town – The South African government is seeking to negotiate a new trade agreement with the United States after the US imposed a 30% tariff on certain South African goods.

The US is South Africa’s second-largest trading partner, and vehicle exports to the US exceed $2 billion.

Tensions between the two nations have risen, particularly after President Donald Trump accused South Africa of mistreating white farmers and confiscating their land.

Additionally, the US expelled South Africa’s Ambassador Ebrahim Rasool.

Trump, on April 2, announced a global 10% tariff on all imports, with higher rates for countries deemed “worst offenders”, including South Africa.

In a briefing on April 2, he explained that the US would implement a reciprocal tariff structure to balance trade and protect American interests. He criticised countries for exploiting trade with the US, running large surpluses, and imposing high tariffs or hidden charges like VAT.

South Africa is listed as one of these “worst offenders”, with Trump claiming US tariffs on South African goods are 60%. In response, the US will impose a “discounted” 30% tariff on South Africa.

“A lot of bad things are happening in South Africa,” Trump said. “We send them billions of dollars but we had to cut their funding because bad things are happening.”

Trump also announced a global 25% tariff on imported vehicles, effective immediately, and stated that countries could avoid tariffs by relocating production to the US. The reciprocal tariffs will take effect on April 9, with the 10% tariff starting earlier on April 5.

In response to the tariff decision, South African Minister of Trade, Industry, and Competition Parks Tau announced plans to urgently meet with US authorities.

The South African Presidency also expressed concern over the new tariffs, emphasising the need for a new bilateral trade agreement to ensure long-term trade certainty and shared prosperity.

“The Presidency has noted with concern the newly imposed tariffs on South African exports to the United States of America,” said in a statement on Thursday.

“While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and create barriers to trade and shared prosperity.

“The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US, as an essential step to secure long-term trade certainty.”

 

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