logo
Donald Trump's tariffs could cost South Africa 100,000 jobs

Donald Trump's tariffs could cost South Africa 100,000 jobs

IOL News3 days ago
Finance Minister Enoch Godongwana has warned that South Africa stands to lose more than 100,000 jobs if it fails to secure a renewed trade agreement with the United States
Image: Phando Jikelo / GCIS
Finance Minister Enoch Godongwana has warned that South Africa stands to lose around 100,000 jobs due to US tariffs if a trade deal is not renewed.
In an interview with Bloomberg Television, Godongwana said the country's automotive sector, which exports heavily to the US, would be hardest hit because of the tariffs .
"We heard from the central bank governor saying, potentially, if the current deal, the current tariffs stay in place, 100,000 jobs could be at stake", Godongwana said.
Earlier this year, US President Donald Trump imposed a 25% tariff on all vehicles imported into the US and has since upped the ante on South Africa, informing President Cyril Ramaphosa last week that South Africa will be hit with a 30% tariff on all its exports to the United States from August 1.
This comes despite Ramaphosa's recent efforts to preserve and strengthen trade ties with Washington, including discussions held at the White House earlier this year, aimed at resolving long-standing trade tensions.
Godongwana added that the stakes are high and the economic impact would be severe if a deal is not reached.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
"My prayer, first and foremost, is that the deal should be made by August 1st. And secondly, if it's not made, it would be useful that we get an extension until we finalise the deal,' he added.
"Of course, the US has a huge economy. If we lose a trading partner such as the USA, it's going to have a major impact and create more unemployment in the economy.".
Minister of Agriculture John Steenhuisen earlier this year also conceded that the future of South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, saying the government was 'hoping for the best but preparing for the worst.'
"When we approached the subject of AGOA, it was made very clear that it is a creature of Congress and that we would have to engage with Congress, my personal view is that AGOA may still be on the boil but it is going to be different from the AGOA we know from the past," Steenhuisen said.
Business Leadership South Africa CEO Busisiwe Mavuso has also warned that if the trade deal is not renewed, the country's economic momentum could be disrupted.
"Earlier this year, confidence was building - you could feel it in boardrooms and investment committee meetings. Then the global trade environment shifted dramatically," Mavuso said.
"The looming expiration of the current 10% tariff arrangement on July 9 could see South African exports to the US facing 30% tariffs, fundamentally altering trade flows and forcing rapid strategic adjustments".
IOL Business
mthobisi.nozulela@iol.co.za Get your news on the go, click here to join the IOL News WhatsApp channel
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Gauteng and KwaZulu-Natal lead South Africa in cash-in-transit robberies
Gauteng and KwaZulu-Natal lead South Africa in cash-in-transit robberies

IOL News

time8 hours ago

  • IOL News

Gauteng and KwaZulu-Natal lead South Africa in cash-in-transit robberies

A cash guard was shot during a cash-in-transit robbery in Pietermaritzburg on Wednesday. Image: KwaZulu Private Ambulance Gauteng and KwaZulu-Natal are currently the provinces with the highest risk for cash-in-transit (CIT) robberies. In the first six months of the year, almost 100 CITs have been recorded in South Africa, according to the Cash-in-Transit Association of South Africa (Citasa). A provincial breakdown of these robberies revealed the following: Gauteng (34%), KwaZulu-Natal (33%), North West (9%), Eastern Cape (8%), Western Cape (6%), Mpumalanga (5%), Limpopo (3%) and Free State (2%). Citasa head Grant Clark said there is a one percent difference between CIT robberies in Gauteng and KZN for the first six months of 2025. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'CIT robbers execute CIT robberies across provincial borders,' Clark said. 'It is possible that the current trend may continue, but CIT robbers also commit robberies in other provinces, such as the Free State, during July 2025.' Clark said the decline in CIT robberies can be attributed to several factors stemming from the collaboration among various role players. He said these factors include preventative measures including the sharing of information; significant arrests by the police; successful opposition to bail applications; armed CIT teams defending themselves by returning fire and drivers using defensive driving techniques; CIT teams supporting each other to prevent robberies; rollout of upgraded fleet vehicles across the industry; and perpetrators failed attempts to access cash despite using explosives with multiple detonations. 'The CIT industry continues to observe that CIT robbers released on bail or parole often return to CIT robberies. Therefore, the risk of CIT robberies remains and requires ongoing vigilance and coordinated efforts from all stakeholders, including the public,' Clark said. This comes off the back of a CIT robbery in Pietermaritzburg, in KZN, on Wednesday afternoon. On Wednesday, a cash guard was shot during a cash-in-transit robbery in Pietermaritzburg. Image: KwaZulu Private Ambulance KZN police spokesperson Colonel Robert Netshiunda said police are searching for 12 suspects who robbed a cash delivery vehicle of an undisclosed amount of money. 'One security guard sustained multiple gunshot wounds and was later conveyed to a nearby hospital for medical attention. The suspects also reportedly robbed two firearms and ammunition before fleeing from the scene,' Netshiunda said. Mi7 National Group reported that a CIT robbery occurred on Murray Road, leaving one guard shot and another traumatised. 'One security officer was found on site, disoriented and visibly traumatised, but without physical injury. A second officer was discovered nearby with gunshot wounds and in a serious condition. Mi7 ALS (advanced life support) medics initiated treatment on scene, stabilised the patient with the help of another service provider, and transported him under ALS care to a nearby hospital for further treatment,' Mi7 said. Mi7 added that unconfirmed reports from the scene suggest around 12 suspects using three or four vehicles were involved in the incident. Moreover, the suspects were armed with high-calibre rifles, including AK-47s, and the armoured vehicle was bombed during the incident. KwaZulu Private Ambulance (KZPA) service also responded to the CIT. KZPA spokesperson Craig Botha said it was the second CIT the service responded to this week, following a similar incident on the R34 in Vryheid on Saturday night, which had no injuries.

South Africa's human rights crisis: Calls for action ahead of National Dialogue
South Africa's human rights crisis: Calls for action ahead of National Dialogue

IOL News

time10 hours ago

  • IOL News

South Africa's human rights crisis: Calls for action ahead of National Dialogue

Amnesty International South Africa has asked President Cyril Ramaphosa to invest the money allocated for the National Dialogue in the protection and fulfilment of people's rights. Image: Supplied / GCIS Civil rights organisation, Amnesty International South Africa, has urged President Cyril Ramaphosa to redirect the R700 million allocated for the National Dialogue. The organisation advocates for this budget to be invested instead in safeguarding and fulfilling the basic human rights of South African citizens. Ramaphosa formally announced the National Dialogue last month. It is intended to be a platform for reflection on the nation's current state, envisioning its future, and establishing the foundation for the upcoming National Development Plan. The process, scheduled for August 15, 2025, will unfold in phases, including local consultations and sectoral engagements, to provincial and national gatherings, over the period of a year. Ramaphosa also pointed out that this is a chance for South Africans to shape the next chapter of democracy, adding that it is an opportunity to forge a new social compact for the development of the country. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ While South Africa's transition to democracy years ago was a landmark event, the country continues to grapple with significant challenges stemming from its past and present realities. Despite progress in some areas, deep-seated issues such as poverty, inequality and unemployment persist, often linked to the legacy of apartheid and the slow pace of land reform. Furthermore, corruption and state capture have undermined public institutions and service delivery, impacting basic services like water, electricity, and healthcare. Amnesty International South Africa's executive director, Shenilla Mohamed, said that while nation-building and social cohesion are important, the government should ensure that the budget allocated does not come at the expense of addressing the country's most pressing challenges. 'Most of the country's population lives in dire conditions and do not have access to basic essential services such as water and sanitation,' said Mohamed. 'Repeatedly, we hear people complaining of raw sewerage flowing through townships, inadequate housing, poor medical services, lack of quality education, high rates of gender-based violence, crime, and the list goes on. To address these violations and ensure the fulfillment of basic human rights, we need more government action and increased investment,' she said. Asked to comment on the statement, Ramaphosa's spokesperson Vincent Mangwenya did not respond. Amnesty stated that, despite a progressive legal landscape, rates of sexual and gender-based violence remain staggeringly high, with the number of reported offences in 2023/2024 sitting at 53,285, adding that the South African Police Service continues to fail in ensuring quality investigations. The group also highlighted the situation of human rights defenders and whistleblowers who have been killed with impunity. 'Yet these are the brave individuals who expose acts of criminality and abuse by government, corporations and people in power. While South Africa is in the process of strengthening whistleblower legislation, there is no legislation for the protection of human rights defenders. A human rights defender is anyone who, individually or in association with others, acts to defend and/or promote human rights at a local, national, regional, or international level.' The organisation said that when it comes to basic services, over 3 million people have no access to basic water supply service, while 5.3 million households do not have access to safe and reliable drinking water. 'Decades of corruption and the mismanagement of public funds have weakened the government's ability to safeguard the country's water security, especially in the face of climate change and extreme weather events. Climate change is another threat to a wide range of human rights and will continue to impact the rights to life, health, housing, water, and sanitation. Without proper investment in climate-resilient infrastructure, we will continue to see destruction and loss of life during floods and other extreme weather events. 'There are a number of ways to spend R700 million. We urge the South African government to invest it in the protection and fulfilment of people's human rights,' said Mohamed. Meanwhile, political analyst Professor Sipho Seepe said the National Dialogue is a costly distraction meant to give the impression that Ramaphosa's administration is doing something. He said this is all about smoke and mirrors, something that Ramaphosa has mastered and perfected. 'The National Dialogue has no legal and constitutional standing. Its recommendations are not legally binding. To that extent, it is just another talkshop that is meant to cover up Ramaphosa's glaring failures,' he said. Another political analyst, Ntsikelelo Breakfast, said there is no need for the National Dialogue to uncover challenges facing the country, adding that they are well-known. 'He is always having a State of the Nation Address (SONA) and he can't tell us that he is not aware of the problems. What is it that he has been talking about? The whole thing is not necessary. We don't need a National Dialogue to understand our problems,' he said.

Court dismisses Khoza's bid to remove corruption report from Outa
Court dismisses Khoza's bid to remove corruption report from Outa

IOL News

time11 hours ago

  • IOL News

Court dismisses Khoza's bid to remove corruption report from Outa

The Johannesburg High Court has dismissed an application by the National Students Financial Aid Scheme (Nsfas) former chairperson, Ernest Khoza's application for the Organisation Undoing Tax Abuse (Outa) to remove a report implicating him in corruption. Image: File Former board chairperson of the National Student Financial Aid Scheme (Nsfas), Ernest Khoza, has lost a bid to challenge the Organisation Undoing Tax Abuse (Outa) to remove the report implicating him in corruption. This after the Johannesburg High Court dismissed his application for Outa to remove the report from its website. It was Khoza's second attempt after he wrote to Outa, through his attorneys, demanding the removal of the report shortly after it was published last year. The report, which was published in January 2024, exposed how Khoza and former Higher Education Minister, Blade Nzimande, defrauded Nsfas through kickbacks from service providers. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Khoza did not respond to calls and messages. But in his application, he sought for the court order to take the report down from its website and an order that he must be allowed to respond to the allegations. He also demanded that the report only be republished once this was completed to his satisfaction, adding that the republished report contain an accurate record of his responses to each allegation. Khoza argued that Outa was no mere private party, and that the default common law position did not apply to it. He stated his argument as follows: - Outa proclaims to the world that it exercises a public interest function. It undertakes quasi-public functions, which must attract commensurate public duties. - Although lacking any legal authority or mandate to do so, Outa purports to conduct investigations into allegations of malfeasance and corruption in the public sphere. - Outa holds itself out as following a fair investigation process, described on its website as its '5-step methodology', which includes investigations, engagement with those implicated, exposure of its findings to the public, mobilisation of public interest in the matter, and litigation aimed at achieving what it perceives as the appropriate remedy. - Outa seeks to convey the message that it follows a fair investigation process, and that its findings can therefore be trusted. This, in turn, creates a legitimate expectation on the part of a person implicated in wrongdoing in an Outa report to be heard prior to publication. - In publishing its investigation reports, Outa (a reputable organisation) reaches a wide audience, and therefore acts as a quasi-media organization, and attracts similar duties to the recognised media, in particular the duty to allow implicated parties prior notice and an opportunity to comment, prior to publication. - Section 8(2)(iii) and (iv) of the Constitution provides for the horizontal application of fundamental rights, and should be applied in the circumstances. In addition to the right of reply and fair process, the applicant asserts that his fundamental right to dignity includes the right to be heard and to preserve his reputation. However, in its answering affidavit, Outa described itself as a non-profit civil action organisation supported and publicly funded by ordinary South Africans. Its mission includes challenging and taking action against maladministration and corruption, and, where possible, holding those responsible to account. The organisation added that as part of its work, it has investigated alleged maladministration in the administration of publicly funded bursaries and student accommodation by the Department of Education and Nsfas, the government-funded bursary and loan organization. 'OUTA received recordings of a telephone conversation purportedly involving the applicant, duly investigated, and in January 2024, it published the article and impugned report,' read the papers. Outa added that the report contains accurate quotes from the recordings, and that it is truthful and has been published in the public interest. The court said the investigation did not determine anything, adding that it made prima facie findings of fact and provided them to the relevant authorities with recommendations on further action. 'None of the findings or recommendations contained in Outa's report are binding on anyone, and the police and National Prosecuting Authority will decide independently whether to investigate Outa's complaints or to prosecute anyone accused by Outa of wrongdoing,' read the judgment, which added that the organisation performs investigations and makes recommendations in its capacity as a private actor. Reflecting on the outcome, Outa's executive director of accountability, Advocate Stefanie Fick, said this judgment reinforces the principle that private actors, even those acting in the public interest, are not bound by the same procedural obligations as public entities. ​Fick said the judgment also protects the ability of civil society organisations to expose corruption without undue interference, while preserving the common-law remedies available to individuals who feel aggrieved by such publications.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store