The government says it is finalising a support package for companies, producers and workers affected by the tariffs on South African exports to the United States (US).

This as the Trump-led administration stands firm on imposing a 30% tariff on local exports.

Zululand Observer reports that President Cyril Ramaphosa said, while they continue to engage the US on the subject, a support package, to be detailed at a later stage, will be in place to assist those vulnerable to the reciprocal tariffs.

“The reciprocal tariffs have been imposed by the US on a significant number of its trade partners and South Africa has not been spared. South Africa will continue negotiating with the US regarding the 30% tariff announced by the US, which will come into effect on or after 12:01 eastern daylight time, seven days after August 1,” said Ramaphosa.

He said all applicable exceptions published in the previous US Executive Order are set to remain in force.

These exceptions covered products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy and energy products.

“South Africa and US trade relations are complementary in nature, and South African exports do not pose a threat to US industry. Importantly, SA exports to the US contain inputs from the African continent and contribute to intra-Africa trade.

“South Africa will continue to pursue all diplomatic efforts to safeguard its national interests. It is important that as a country, we keep our people at work and our companies producing some of the high-quality products destined for many parts of the world,” said Ramaphosa.

He said they are exploring alternative markets as part of a diversification strategy in hopes of creating resilience of the country’s economy.

An export support desk has also been established to provide updates on development and provide advisory services to exporters.

“The details are to be published by the Department of Trade, Industry and Competition on its website,” said Ramaphosa.

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