South Africa continues tariff negotiation with U.S.
According to a statement released by the presidency, South Africa will continue to negotiate with the United States regarding the 30 percent tariff, which is now expected to take effect at 12:01 a.m. EDT (0401 GMT) on Aug. 7.
The South African government has presented the U.S. side with a framework deal aimed at enhancing mutually beneficial trade and investment relations.
"All channels of communication remain open to engage with the United States, and our negotiators are ready, pending an invitation from the United States," the presidency said in the statement.
The presidency noted that the South African government is finalizing a package to support companies vulnerable to reciprocal tariffs, which includes several measures to assist firms, producers, and workers.
"South Africa will continue to pursue all diplomatic efforts to safeguard its national interests," said the presidency.
On Tuesday, the South African government acknowledged that "the intersection of geopolitical, domestic and trade issues" defines the current impasse between the two sides.
Relations between South Africa and the United States have taken a downturn since U.S. President Donald Trump took office in January.
Trump indicated that he may skip the Group of 20 Summit, which will be held in November in Johannesburg, the largest city and economic hub of South Africa.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
40 minutes ago
- The Star
World economies reel from Trump's tariffs punch
ASIA/SOUTH-EAST ASIA (AFP): Global markets reeled at the weekend after President Donald Trump's tariffs barrage against nearly all US trading partners as governments looked down the barrel of a seven-day deadline before higher duties take effect. Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41 per cent. However, implementation will be on August 7 rather than Friday as previously announced, the White House said. This gives governments a window to rush to strike deals with Washington setting more favorable conditions. Neighboring Canada, one of the biggest US trade partners, was hit with 35 percent levies, up from 25 percent, effective Friday -- but with wide-ranging, current exemptions remaining in place. The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports. But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy. Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries. Trump's actions come as debate rages over how best to steer the US economy, with the Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut. Data Friday showed US job growth missing expectations for July, while unemployment ticked up to 4.2 percent from 4.1 percent. On Wall Street, the S&P 500 dropped 1.6 percent, while the Nasdaq tumbled 2.2 percent. - Political goals - Trump raised duties on around 70 economies, from a current 10 percent level imposed in April when he unleashed "reciprocal" tariffs citing unfair trade practices. The new, steeper levels listed in an executive order vary by trading partner. Any goods "transshipped" through other jurisdictions to avoid US duties would be hit with an additional 40 percent tariff, the order said. But Trump's duties also have a distinctly political flavor, with the president using separate tariffs to pressure Brazil to drop the trial of his far-right ally, former president Jair Bolsonaro. He also warned of trade consequences for Canada, which faces a different set of duties, after Prime Minister Mark Carney announced plans to recognize a Palestinian state at the UN General Assembly in September. In targeting Canada, the White House cited its failure to "cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" -- although Canada is not a major source of illegal narcotics. By contrast, Trump gave more time to Mexico, delaying for 90 days a threat to increase its tariffs from 25 percent to 30 percent. But exemptions remain for a wide range of Canadian and Mexican goods entering the United States under an existing North American trade pact. Carney said his government was "disappointed" with the latest rates hike but noted that with exclusions the US average tariff on Canadian goods remains one of the lowest among US trading partners. - 'Tears up' rule book - With questions hanging over the effectiveness of bilateral trade deals struck -- including with the EU and Japan -- the outcome of Trump's overall plan remains uncertain. "No doubt about it -- the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II," said Wendy Cutler, senior vice president of the Asia Society Policy Institute. On Friday, Trump said he would consider distributing a tariff "dividend" to Americans. Notably excluded from Friday's drama was China, which is in the midst of negotiations with the United States. Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but have agreed to temporarily lower these duties and are working to extend their truce. Those who managed to strike deals with Washington to avert steeper threatened levies included Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union. Among other tariff levels adjusted in Trump's latest order, Switzerland now faces a higher 39 per cent duty. - AFP
Malay Mail
2 hours ago
- Malay Mail
Biofuel battle: Why India is shielding its farmers in the face of US trade pressure
MUMBAI, Aug 3 — US President Donald Trump on Thursday slapped a 25 per cent tariff on Indian goods after prolonged talks that got bogged down over access to India's labour-intensive agricultural sector, which New Delhi has pledged to protect. Why is India opposing the products the US is lobbying for? The United States is pressing India to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts. While India is willing to provide greater access for US dry fruits and apples, it is holding back on corn, soybeans, wheat, and dairy products. A key reason for this resistance is that most US corn and soybeans are genetically modified (GM), and India does not permit the import of GM food crops. GM crops are widely perceived in India as harmful to human health and the environment, and several groups affiliated with Prime Minister Narendra Modi's ruling Bharatiya Janata Party (BJP) are opposing their introduction. The commercial cultivation of a high-yielding GM mustard variety that India developed itself is currently not allowed due to an ongoing legal battle. Like GM crops, dairy is also a highly sensitive issue, as it provides a livelihood for millions of farmers, including many who are landless or smallholders. The dairy industry helps sustain farmers even during erratic monsoon seasons, which can cause significant fluctuations in crop production. In India, where a large proportion of the population is vegetarian, food choices are strongly influenced by cultural and dietary preferences. Indian consumers are particularly concerned that cattle in the US are often fed animal by-products — a practice that conflicts with Indian food habits. A farmer sprinkles fertiliser in a paddy field on the outskirts of Amritsar on July 5, 2025. — AFP pic Why are agricultural imports politically charged? India is self-sufficient in most farm goods, with the exception of vegetable oils. After liberalising cooking oil imports over three decades ago, the country now has to import nearly two-thirds of its supply to meet demand. India does not want to repeat this mistake with other basic foods, which account for nearly half of its consumer price index. Though agriculture makes up just 16 per cent of India's nearly US$3.9 trillion economy, it is the lifeblood for nearly half the country's 1.4 billion people. Four years ago, this powerful voting bloc forced Modi's government into a rare retreat on a set of controversial farm laws. Some in power fear a flood of cheaper US imports would bring down local prices and hand opposition parties an opportunity to sharpen its attack on the government. New Delhi is also worried that a trade deal with the US could also force it to open its agricultural sector to other countries. Farmers work in an onion farm near power-generating windmill turbines of Adani Green Energy at Ahmedabad-Narayan Sarovar state highway near Nakhatrana village in the western state of Gujarat November 29, 2024. — Reuters pic How does farming in India and the US differ? The vast disparity in the scale of farming makes it difficult for Indian farmers to compete with their US counterparts. The average Indian farm is 1.08 hectares, compared to 187 hectares in the US For dairy farmers, the difference is even more dramatic — a small herd of two or three animals versus hundreds or more in the US Many Indian farmers also rely on traditional, unmechanised techniques, while American agriculture has developed into a highly efficient, tech-driven industry. Why is India hesitant to use US ethanol in its biofuel programme? One of India's key goals with its Ethanol Blended Petrol (EBP) programme is to reduce energy imports and support domestic farmers by using sugarcane and corn for biofuel production. Indian companies have invested heavily in new distilleries, and farmers have expanded corn cultivation to meet the rising demand. India recently achieved its ambitious target of a 20 per cent ethanol blend in petrol. With state assembly elections approaching in Bihar — a major corn-producing state in the east — allowing US ethanol imports would lower local corn prices. This would probably anger farmers and turn them against the BJP ahead of the election and also undermine the growing distillery sector. — Reuters
The Star
3 hours ago
- The Star
Nvidia denies back-door features in its H20 chips after Beijing raises security concerns
Nvidia said its chips had no 'back doors' after China's cyberspace regulator interviewed company representatives over alleged security risks associated with its H20 chips, which were tailor-made for Chinese customers, although it remains unclear what impact Beijing's mistrust of the US firm will have over time. 'Cybersecurity is critically important to us,' an Nvidia representative said in an email to the South China Morning Post on Thursday night. 'Nvidia does not have 'back doors' in our chips that would give anyone a remote way to access or control them.' The statement was in response to a regulatory move by the Cyberspace Administration of China (CAC), the agency responsible for the country's cybersecurity. The Chinese regulator said on Thursday that it had summoned and interviewed Nvidia regarding the potential tracking and remote control functions of its H20 chips, a surprise move as Nvidia had just received the green light from Washington to export the chips to clients in China. Nvidia's shares were down 0.8 per cent on Thursday in New York. The latest development highlights the challenges faced by Nvidia, the world's most valuable company in terms of market capitalisation, in trying to please both Washington and Beijing amid intensifying US-China rivalry in artificial intelligence and hi-tech. While China needs Nvidia chips to build out its computing infrastructure, Beijing remains committed to the long-term goal of tech self-sufficiency by reducing its reliance on imported American equipment and technologies. In the latest example of that, a group of Chinese semiconductor and AI companies – including Huawei Technologies, Cambricon Technologies and Moore Threads – formed an alliance to push for the adoption of locally developed processors for AI projects. China's cyberspace administration did not specify the source or evidence for its concerns about back-door security threats associated with Nvidia chips. In May, a bipartisan group of US lawmakers introduced a bill that would require makers of AI processors to incorporate tracking technology in their chips before export. The proposal aimed to address reports of US export-controlled AI chips being smuggled into China via third countries. But Nvidia has never said that its H20 chips have such tracking functions. The summoning of Nvidia was the latest example of the long-lasting mistrust between Beijing and Washington over the other's tech hardware. The US has banned the use of Huawei gear in the American telecommunications network, while new guidelines from the administration of US President Donald Trump implied that the use of Huawei's Ascend AI chips 'anywhere in the world' could be a violation of US export controls. For its part, China accelerated the process of replacing imported technologies in its key infrastructure facilities about a decade ago, after former US National Security Agency contract employee Edward Snowden exposed the global spying practices of the US. In May 2023, the CAC said products from another US chip giant, Micron Technology, failed a national security review, resulting in a sales ban of its products to key infrastructure operators in China. - SOUTH CHINA MORNING POST
