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South Africa's struggle with US trade relations amidst looming tariffs

South Africa's struggle with US trade relations amidst looming tariffs

IOL News21 hours ago
Analysts say the South African government is wasting time in engaging with US President Donald Trump.
Image: AFP
Political analysts say the South African government is wasting its time in engaging with US President Donald Trump on beneficial trade and investment relations between the two countries.
With a 30% tariff expected to be imposed on South African goods by the US at midnight on Thursday, negotiations were still taking place between the two countries regarding the proposed tariffs.
This was after South Africa failed to secure a trade deal with the US last week.
President Cyril Ramaphosa has confirmed that he had a discussion with Trump on Wednesday.
Presidency spokesperson Vincent Magwenya said the two agreed to continue further engagements on bilateral trade matters.
'President Cyril Ramaphosa held a telephone discussion during the morning of 6 August 2025, with US President Donald Trump on bilateral trade matters.
'The two leaders undertook to continue with further engagements, recognising the various trade negotiations the US is currently involved in. Respective trade negotiating teams will take forward more detailed discussions,' Magwenya said.
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Both the Department of Trade, Industry and Competition (DTIC) and the Department of International Relations and Cooperation (DIRCO) refused to discuss the matter.
Meanwhile, a senior government official within the DTIC said officials had sleepless nights with last minute discussions as they tried to avert the tariff hikes, but were keeping the news under wraps so that the talks would not be jeopardised.
'Yes, there has been huge pressure and last-minute talks to try to convince the US government to at least cut the tariffs to 15%, but that is a matter the department would have to confirm with you at a later stage if it succeeds.
'Our government has been working on it, but I can tell you now it does not look good because discussions have started late despite the president having indicated that they have made efforts to reach Trump,' the source said.
Political analyst Ntsikelelo Breakfast said the government is wasting its time as Trump is unlikely to listen or be sympathetic.
'The EU has just signed (an agreement on higher tariffs) and who are we to think we can win if they sign. We are in trouble and Trump is not going to forgive us for taking Israel to the International Court of Justice.
'An attack on Israel is an attack on the US. Even Ramaphosa is wasting his time', said Breakfast.
Another political analyst, Sethulego Matebesi, said Trump is likely to do what he has done during the Oval meeting with Ramaphosa in May.
He said the US President will demonstrate as if he has a sympathetic ear but will do the opposite during engagements.
'Yes, he will provide Ramaphosa with a platform to engage but he will definitely not do as South Africa indicates or requests. I don't think he will change his tone because all factors that led to his decision have not been addressed, from an American point of view South African stands against Israel,' he said.
Meanwhile, South Africa's Portfolio Committee on Trade, Industry and Competition expressed concerns about the impact of the tariffs, particularly on automotive, steel and agricultural products, as South African exports will become less competitive in the US.
'These sectors form part of significant value chains that exist between the two countries. South Africa is a crucial supplier of raw materials to many United States supply chains. The country also possesses strategic mineral reserves such as chrome, manganese and gold, from which the United States can benefit. Therefore, the trading relationship with the US offers opportunities for mutual development and growth,' the committee said.
However, Minister in the Presidency Khumdzo Ntshavheni said the tariffs against South Africa come into effect with the provisions that tariffs will be reviewed as soon as the two countries reach agreement, or a framework deal is found that benefits both countries.
Ntshavheni, who was addressing a post-Cabinet briefing on Thursday, said Cabinet affirmed the government's commitment to finding solutions on the tariffs through negotiations.
She also announced that the Cabinet set targeted measures to support the affected industries, including the creation of a support desk that will act as a direct liaison with companies affected by the new tariffs.
Ntshavheni added that the desk will also assist with tariff absorption and long-term resilience planning.
mashudu.sadike@inl.co.za manyane.manyane@inl.co.za
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