No deal yet as South Africa faces 30% trade tariff

With the Friday deadline fast approaching, South Africa is yet to secure a trade deal with the United States of America.

This as the US government plans to impose a 30% tariff on South African exports as of 1 August.

ALSO READ: Farmers on edge amid pending 30% tariff on exports

While Minister of Trade, Industry and Competition Parks Tau says there is a proposed deal that includes importing liquified natural gas from the US for 10 years, the Donald Trump-led administration is yet to respond.

“South Africa is not in a unique position as the United States attempts to finalise negotiations with some 185 countries around the world by 1 August.

“We remain committed to the cause as we await substantive feedback from our US counterparts on the final status on our framework deal,” said Tau.

He said President Cyril Ramaphosa has expressed ‘willingness to reset the trade relationship with the US’ to develop a mutually beneficial trade relationship.

“The Department of Trade, Industry and Competition has made this issue an apex priority since well before 2 April, and we have centred South Africa and her people as our non-negotiable,” said Tau.

This comes amid growing fears among several industry players of the negative impact the 30% tariff will have on the country’s economy.

Economist at the University of Zululand, Professor Irrshad Kaseeram said thousands of jobs could be lost in aluminium, steel, vehicles, auto parts, as well as the clothing and textiles sectors if a favourable deal is not reached.

He said, with Trump’s tariffs and the removal from the African Growth and Opportunity Act (AGOA) post-September, ‘South Africa’s employment losses will be staggering’.

Don’t have the ZO app? Download it to your Android or Apple device here:

HAVE YOUR SAY