President Cyril Ramaphosa has noted the correspondence from United States (US) President Donald Trump on the unilateral imposition of a 30% trade tariff against South Africa.

In a letter addressed to Ramaphosa yesterday, Trump announced that imports from South Africa would be subjected to new 30% tariffs taking effect from August 1.

“This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States.

“Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” the Presidency said in a statement.

South Africa’s interpretation of the available trade data shows that the average tariff on imported goods entering South Africa stands at 7.6%.

The Presidency emphasised that 56% of goods enter South Africa at a 0% most-favoured-nation tariff, with 77% of US goods entering the South African market under the 0% duty.

“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States. We welcome the commitment by the US government that the 30% tariff is subject to modification following the conclusion of our negotiations,” the Presidency said.

South Africa has continued to engage the United States, most recently at a meeting held on the sidelines of the US-Africa Summit on June 23 in Luanda.

“It was at this meeting that South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade. The South African negotiating team still awaits this template, however, President Ramaphosa has instructed the team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on May 20.

“This framework deal addresses the issues initially raised by the US, including South Africa’s supposed trade surplus, unfair trade practices and lack of reciprocity from the US.

“The president urges government trade negotiation teams and South African companies to accelerate their diversification efforts to promote better resilience in both global supply chains and the South African economy,” the Presidency said.

Ramaphosa further noted that South Africa is among several countries to have received this communication yesterday. – SAnews.gov.za

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