WATCH | ‘SA won’t act out of spite’ over Trump tariffs, says Ramaphosa

Donald Trump

Cape Town – President Cyril Ramaphosa has addressed the recent imposition of tariffs by the United States on South African exports.

Speaking to journalists in Soweto on Sunday, Ramaphosa emphasised the sovereignty of both nations.

“The United States, like any other country, is a sovereign country and they are entitled to take decisions in whichever way they want to. Like ourselves, we are a sovereign country and can decide on any matter that has to do with our international dealings with others. And so, it is within our right, as it is within their right,” the president said.

“They have imposed tariffs and we are examining the impact of those tariffs on us. And as the minister of trade and industry has said, we will be able to state what our position is. So in the end, those are matters that we are going to continue dealing with in a very responsible and very very proper manner. And we are not a government that would just act out of spite… we are not a government that will act out of emotions. Everything that we do, we examine very carefully and look at the implication and the impact.”

The US administration, under President Donald Trump, last week announced a sweeping 10% baseline tariff on all imports, with South African goods facing a heightened rate of 31%.

This move significantly impacts key South African exports, including vehicles, precious metals, machinery, and citrus products.

In response, South African officials have expressed concerns over the calculations leading to the 31% tariff.

Trade, Industry, and Competition Minister Parks Tau questioned how the US arrived at the 30% figure, as South Africa’s own calculations suggested 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.

“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.

The tariffs effectively nullify the benefits previously enjoyed under the African Growth and Opportunity Act (AGOA), a trade initiative granting qualifying African nations duty-free access to the US market.

AGOA, set to expire in September, now faces an uncertain future.

Tau highlighted the need for South Africa to diversify its export markets, stating that the government plans to “cast its net wider” by targeting markets across Africa, Asia, Europe, and the Middle East. ​

Despite the challenges posed by the US tariffs, South Africa has no immediate plans for retaliatory measures. Instead, the government aims to negotiate exemptions and quota agreements with the US while supporting industries most affected by the tariffs, including the automotive sector, agriculture, and metals.

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