Talks with the US are continuing in hopes of finding a solution.
Trade, industry and competition Minister Parks Tau has outlined the challenges South Africa faced during negotiations with the United States (US), as the country prepares to respond to the looming 30% tariff on its exports.
The tariffs are scheduled to take effect on Friday after South Africa did not reach a trade agreement with the US before President Donald Trump’s deadline.
Trump had delayed the implementation of the tariffs for 90 days in April to allow time for negotiations.
Tau dismisses blame game ahead of US tariffs
During a media briefing in Germiston on Monday, Tau emphasised that discussions with the US are still ongoing in an effort to reach a resolution.
“I think it would be irresponsible as a country [not to do so],” he said.
Government had submitted a proposed Framework Deal in May, which aimed to reduce the US trade deficit, address tariff concerns, promote digital trade, strengthen commercial ties, boost investment, and remove non-tariff barriers – ultimately to build a more balanced and beneficial trade relationship with the US.
Tau also addressed criticism directed at him and International Relations and Cooperation Minister Ronald Lamola over the non-success to secure a trade deal.
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The Democratic Alliance (DA) recently accused both ministers of “negligence and ineptitude”, claiming the lack of a deal amounted to “failed diplomacy”.
The party also questioned why South Africa did not reach an agreement, while Botswana, initially facing a 37% tariff, managed to negotiate it down to 15%.
In response, Tau dismissed the blame game as unhelpful.
“Should we be apportioning blame? I think to those that seek to score political points as opposed to finding solutions to the challenges that we have,” he said.
Watch the briefing below:
Why negotiations have been difficult
Tau explained that a South African delegation met with US officials in Angola a month ago, requesting more time to revise a new template of the Framework Deal.
However, the US did not respond to the proposed draft or to the confidentiality agreement South Africa had signed to move the discussions forward.
“We did not get a signed confidentiality agreement on the side,” he said.
Tau added that just two days before the tariff announcement, the South African government followed up with the US, asking how to proceed.
The US response was that South Africa should submit a concrete offer – not a negotiating position.
“The feedback is: ‘let’s look at the template as a red herring, please give us an offer and we will respond’.”
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The minister detailed how difficult the negotiation process with the US was, explaining that South Africa was expected to submit an offer without receiving a counter-offer in return.
This made it a very challenging position to negotiate from.
He also insinuated that any offer made in such a situation comes with a cost – especially because there’s no guarantee of what the country will receive.
“When you are in that situation, part of your reality is that you actually don’t know what tariff you are going to get even after making that offer. So we can only make an offer, sit, wait and hope,” Tau remarked.
South Africa had to act in its own best interest while also taking into account the US’ influence in the global trade landscape, according to Tau.
He added that instead of assigning blame, the focus should be on understanding the full context and navigating “a complex negotiating environment” responsibly.
“At this point, we are focused on the task and not who to blame. We leave that to others.”
South Africa-China relations
When asked if the tariffs would push South Africa to align more closely with China, Tau said the situation was not as straightforward as “simply opening the floodgates”.
The minister pointed out that the announcement at a China-Africa cooperation summit (FOCAC) in June – that China plans to sign a new economic pact with the continent, removing all tariffs for countries it has diplomatic relations with – means that a formal free trade agreement will need to be established.
He warned that entering into such an agreement requires careful consideration.
“You have to think about how you safeguard your own markets and which industries would be impact.”
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Tau further revealed that China has also proposed signing a memorandum of understanding (MoU) focused on industrialisation.
“They have given us the proposal; we are currently discussing it and should finalise it,” he said, adding that this could come with geopolitical implications.
“It might be that the discussion about who you are working with becomes an issue… but I’m not suggesting that there are unlikely to be complications in that discussion.”
New ambassador to the US
Lamola later confirmed that the appointment of a new South African ambassador to the US is in its final stages.
The minister explained that the process has not been straightforward, partly due to the earlier departure of former ambassador Ebrahim Rasool, who was declared “persona non-grata” by the US.
He emphasised that President Cyril Ramaphosa has been giving the matter “careful consideration” and applying “due diligence”.
Ramaphosa previously appointed former deputy finance Minister Mcebisi Jonas as his special envoy to the US.
However, Jonas’ past remarks about Trump have reportedly complicated matters.
“The president, at the right time, will announce who will become the ambassador of South Africa in the US,” Lamola said.
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“This will not be dictated to by anyone. He will do so in line with his powers as provided for in the Constitution.
“Obviously, he may consult whomever he deems necessary and prudent to consult to appoint this ambassador.”
Lamola also made it clear that the absence of an ambassador had no impact on the recent trade dispute with the US.
“Ambassadors do not negotiate any trade deals, as it is being suggested in some quarters that the fact that we don’t have an ambassador might have affected our ability to reach an agreement. That is not a correct description.”
