Government's response to US tariffs
Image: IOL Graphics/Se-Anne Rall
Ministers Parks Tau and John Steenhuisen are expected to brief the media on the government's response to the US tariffs and measures that will be implemented to mitigate the impact.
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 ✕
Ad loading
The South African government remains optimistic that recently imposed import tariffs by the US could still be reconsidered, following direct communication between President Cyril Ramaphosa and US President Donald Trump.
IOL
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
2 hours ago
- eNCA
Meat industry welcomes government trade plan
JOHANNESBURG - The Association of Meat Importers and Exporters has welcomed a joint announcement by Ministers Parks Tau and John Steenhuisen outlining government's trade plans. WATCH: Discussion | SA halts trade of Brazilian live/fresh poultry, eggs On Tuesday, they said that South Africa would be taking a revised trade offer to the United States in the hope of having the 30% trade tariff reduced. The Minister have emphasized that diversification is key.
IOL News
3 hours ago
- IOL News
Unfazed: South Africa's stance on US visa policies impacting Zimbabwe
US President Donald Trump continues to disrupt global diplomacy after a recent visa ban imposed on Zimbabwe. Image: Picture: Evan Vucci/AP The South African government seems unaffected by the recent US visa ban imposed by the embassy in Harare, Zimbabwe, despite President Donald Trump's ongoing disruptions to global diplomacy through tariff increases and immigration policies. The US has suspended all routine immigrant and non-immigrant visa services to Zimbabwe due to concerns over misuse and overstays, although other visa types remain unaffected. Although South Africa was exempt from new Trump visa restrictions on SADC countries, a new policy has been implemented for Malawi and Zambia. Citizens of these nations are now required to pay a bond of $5 000 (R88 656) to $15 000 (R265 967) to travel to the US. Additionally, the citizens are required to use one of three airports—Boston's Logan International, New York's JFK International, or Dulles International near Washington D.C.—for both arrival and departure. 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 ✕ When asked whether South African citizens should be worried, Department of International Relations and Cooperation (Dirco) spokesperson Chrispin Phiri gave a brief response: "We do not provide commentary on other countries' visa regimes, and this is our general position, it's not specific to the US." A senior government official, however, downplayed the likelihood of South Africans being affected by the US visa restrictions. "Remember Trump is only in our case because of the International Court of Justice case against Israel and our involvement in BRICS. Nothing more and nothing less," the official said. "South Africans visiting the US are mostly professionals who either go for business or a holiday. We seldom have citizens wanting to immigrate to the should have nothing to worry about,' he said. The US embassy explained that the reasons for the restrictions was because the administration was working to prevent visa overstay and misuse as part of national security. "The Trump administration is protecting our nation and citizens by upholding the highest standards of national security and public safety through our visa process," the embassy said. "We are always working to prevent visa overstay and misuse." In June, the US imposed travel bans on citizens from 12 countries, with seven of them located in Africa. Additionally, heightened restrictions were applied to seven other nations, three of which are African. The US has issued a demand to 36 countries, predominantly in Africa, to enhance their traveler vetting procedures. Failure to comply could result in a ban on their citizens visiting the US. International Relations analyst Rejoice Ngwenya said it was unfortunate that the US had an obsession with immigration issues. "All democratic countries must encourage international country movements. However it is incumbent upon citizens that they don't abuse regulations. But one thing to acknowledge in terms of implementation of immigration laws globally is not to interfere and dissuade inter country movements of students because knowledge sharing and education is a universal right,' Ngwenya said.
Daily Maverick
3 hours ago
- Daily Maverick
SA's vital marine manufacturing industry faces existential threat from new US tariffs
Almost $10-billion worth of South African goods exported annually to the United States are now subject to a 30% 'reciprocal' tariff. This move not only threatens production and job losses in local manufacturing and agriculture, but also affects the maritime sector as the provider of transport and logistics that moves these locally produced goods and raw materials to export markets. The overall impact will reshape South Africa's maritime trade flows as the country's goods become less competitive in the US, especially compared with suppliers in countries with lower tariffs. The new tariffs mainly target manufactured goods, including vehicles and components, machinery and equipment, and leisure craft, which have higher value added, while key mining commodities are exempt — effectively derailing South Africa's export-focused industrial growth path. This extends to the marine manufacturing sector, as South Africa's boat and yacht builders that export almost a third of their production to the US — their most important market that was previously duty free under the African Growth and Opportunity Act (Agoa) — are now also subject to the 30% tariff. Jobs and future investment at risk This has an immediate impact on the competitiveness of the South African marine manufacturing sector, putting jobs and future investment at risk in a growing, highly export-oriented sector that is considered one of the keys to unlocking SA's maritime economic potential. A near-collapse of South African vehicle exports to the US since the tariff hikes were first announced in April, with an 87% drop over three months, compared with Q2: 2024, is among the first signals of the impact on manufacturing production and exports. Reduced exports mean lower shipping volumes from South African ports to the US, affecting the capacity utilisation and revenues of the container and vehicle shipping lines that serve these routes. The only shipping line currently providing direct sailings from SA ports to the US east coast (Mediterranean Shipping Company, MSC) told Freight News that it would be maintaining its dedicated SA-US service of four vessels currently in weekly rotation, despite the potential impact of the tariffs on trade volumes. Logic, however, suggests that the number of vessels and/or frequency of sailings of any shipping line on a particular route are likely to be reduced if these are not sailing at capacity as the service becomes less profitable. Logistics bottlenecks and congestion at South African ports, a situation now slowly improving, have resulted in several shipping lines reducing their local ports of call in recent years, or excluding SA's ports altogether. Reduced export volumes as a result of the US tariffs may make South Africa an even less attractive destination to service, further reducing access to shipping capacity, and thus limiting the ability of SA manufacturers and other producers to secure new export business. For exporters, the challenge is not only producing the right goods at the right price, but also delivering them on time at a landed price not excessively inflated by import duties. While the impact of the US tariffs must accelerate efforts to seek new export markets, securing new business and complying with myriad associated regulations is not an overnight process; particularly in a global trading environment that now encourages isolationism and protectionism following the lead of the US. When those new markets are secured, the capacity to ship to them needs to be in place — in other words, we cannot afford to lose the confidence of the global shipping industry nor the capacity of our ports to handle cargo. Declining exports would lead to reduced throughput at South African ports and reduced capacity utilisation, which affects their global rankings and ability to attract shipping lines and generate revenue through port dues. Ports need to be busy, moving volumes at scale, which facilitates imports and competitiveness, enabling cost-effective exports and access for South African producers to global markets. Increased tariffs and trade barriers cause delays, cancellations and disruptions in maritime shipments, leading to higher insurance claims and logistical challenges for cargo insurers and shipping companies. All of these challenges in reduced volumes of trade and reduced export capacity would in turn affect employment in our ports, in the maritime logistics and transport value chain, and in the surrounding network of suppliers and service providers to the maritime sector. Marine manufacturing The SA boat-building industry, primarily focused on leisure craft, has shown impressive growth of over 20% annually in the years following Covid-19. South Africa is the world's second largest producer of catamarans, after France, with more than 90% of our leisure craft exported — and 29% of production exported to the US, which is SA's largest market valued at approximately R1.6-billion in 2024. These exports to the US were duty free under Agoa, which has now been nullified by the imposition of the 30% reciprocal tariff, placing a R3-billion industry that supports up to 10,000 jobs, under existential threat. The sector is characterised by high input and operating costs. Given that aluminium and steel are critical components and inputs in the construction of boats and superyachts, the imposition of the additional 50% tariff on these materials will further harm the sector's competitiveness in the US market. High-value exports stifled The US tariffs are reshaping South Africa's economy and maritime trade by stifling high-value exports, increasing costs for importers and redirecting cargo flows towards exempted raw materials — negating the drive for local beneficiation of raw materials to shift the proportion of exports to higher value finished goods. The US is South Africa's third-largest overall trading partner, after the European Union and China. However, the EU and the US are arguably more important markets than China, as they are destinations for diversified, high value-added manufactured goods, supporting local employment, while exports to China and other BRICS countries are largely low margin, unbeneficiated raw materials and a small basket of agricultural products. Strategies to support local manufacturing and pursue alternative markets, including boosting intra-Africa trade through the African Continental Free Trade Area (AfCFTA) and leveraging BRICS membership to unlock higher value trade, must incorporate measures to incentivise the local processing of minerals and other resources. While the government continues negotiations with the US towards a mutually beneficial trade deal, the announcement earlier this week by the ministers of Trade, Industry and Competition, and International Relations and Cooperation, of an Economic Response Package to assist businesses affected by the tariffs is most welcome. We trust that the Department of Trade, Industry and Competition's newly formed Export Support Desk will support not only businesses in manufacturing in finding and accessing new markets, but also those in maritime transport and logistics sectors adapting to altered volumes and trade flows. Businesses seeking to enter new markets will also need support in ensuring that shipping routes and capacity are available to service new destinations, and meeting logistics and policy requirements of those new markets. DM
