As the repercussions of US President Donald Trump’s tariff increases continue to resonate globally, South Africa’s presidency has voiced its apprehensions.
“We are dedicated to fostering a mutually advantageous trade relationship with the United States; however, the unilaterally imposed and punitive tariffs raise concerns as they act as obstacles to trade and shared prosperity,” the presidency stated.
The statement emphasized the pressing need to negotiate a new bilateral trade agreement with the US that is mutually beneficial, which is crucial for ensuring long-term trade stability.
Trump has enacted a 30 percent tariff on South Africa, which exports a diverse array of products to the United States, its second-largest export market.
Economist Xhanti Payi noted that South Africa maintains a broad trade relationship with the US.
“This includes what we refer to as hard commodities, such as steel, as well as soft commodities like agricultural products, including citrus and grapes,” he explained.
He also pointed out that the country exports a significant number of vehicles and parts to the US, exceeding $2 billion.
“These sectors are vital to South Africa and will undoubtedly be impacted,” Payi remarked.
He expressed concern that smaller nations would bear the brunt of Trump’s tariffs due to their less diversified economies.
“South Africa, on the other hand, has a varied export portfolio that spans multiple countries,” he added.
On Wednesday, the South African rand fell to a three-month low, influenced by the tariff increase and concerns that the pro-business Democratic Alliance might withdraw from the coalition government over disagreements regarding the 2025 budget.
