South African President Cyril Ramaphosa expressed hope on Friday for reaching a trade agreement with the United States, following the announcement of steep tariffs that could deal a major blow to the country’s economy.
U.S. President Donald Trump revealed on Thursday a 30% tariff on all South African exports, scheduled to take effect on August 7. The U.S. is South Africa’s second-largest trading partner, making the move particularly impactful.
Ramaphosa confirmed that “intensive negotiations” are underway, and that South Africa has proposed a mutually beneficial trade package to Washington. Key sectors like agriculture and automotive manufacturing especially citrus, steel, aluminium, and vehicle exports are expected to be hit hardest, with fears of widespread job losses.
Facing an unemployment rate of over 32%, among the highest globally, the South African government is racing to finalize a support package for affected industries. “We’ve got to engage with them and find a way to reach a settlement,” Ramaphosa said, adding that he remains optimistic about finding a solution within the time left.
In response to the looming tariffs, the South African Reserve Bank has revised its economic growth forecast for the year from 1.2% to 1%, reflecting mounting concerns about trade disruptions.
