Ramaphosa: US tariffs highlight urgent need to adapt to 'turbulent headwinds in international trade'
Ramaphosa issued the warning in his latest newsletter, which focused on the US trade tariffs, which come into effect on Thursday. The president said that the decision by the US to impose a 30% tariff on South African imports highlighted the urgency for the need to adapt to what he called "turbulent headwinds in international trade". Ramaphosa said that domestic sectors such as agriculture, automotive and textiles had historically benefited from duty-free access to the US market under the African Growth and Opportunity Act (AGOA). But the incoming tariff regime could potentially reverse the positive gains made under AGOA. Arguing South Africa's case, Ramaphosa added that South African imports "ultimately benefit US consumers in terms of both choice and cost". Ramaphosa said that an example of this was how citrus production was "counter-seasonal" and did not pose a threat to US production. He said that South Africa was also the biggest investor from the African continent into the US, with 22 South African companies investing in a number of sectors including, mining and pharmaceuticals.
Ramaphosa said the country had been engaging the US to enhance "mutually beneficial trade and investment relations" and all channels of communication remained open to engage.
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