Minister Tau says SA diversifying and looking elsewhere to mitigate US trade tariffs
He said the tariffs imposed by the Donald Trump administration have already impacted the auto industry, with a 25% tariff on automobiles and parts coming into effect in April and May, respectively.
In written Parliamentary replies to questions from Members of Parliament (MPs), Tau said the diversification would focus on countries that South Africa has trade agreements with, including some in South America.
Tau said, while the US remains an important trading partner for South Africa, it accounted for just 7% of South African trade in 2024.
He said around 40% of South Africa's trade is with Asian countries, 25% with European countries and 20% with other African nations.
Tau said in February this year, the us 'imposed section 232 tariffs of 25% on steel and aluminium on the basis that imports of these products threaten US national security'.
He said government is now determined to strengthen partnerships in Africa to address business challenges and create a favourable environment for conducting business.
According to Tau, the diversification focuses on countries that South Africa has trade agreements in place, including the Southern African Development Community (SADC), African Continental Free Trade Area and the European Economic Partnership Agreement.
The country also has a preferential trade agreement with the South American trade bloc comprising Brazil, Argentina, Paraguay and Uruguay.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
23 minutes ago
- IOL News
Traorism Fever and the Crisis of Democratic Governance in Africa
Burkina Faso's Captain Ibrahim Traore (left) and Niger's General Abdourahamane Tiani at the Alliance of Sahel States (AES) summit held in Niamey, Niger on July 5, 2024. Image: AFP Boikanyo Nkwatle Across Africa, a new political wave is capturing public and media attention, the rise of what can be termed Traorism Fever. Named after Captain Ibrahim Traoré, the military leader of Burkina Faso who seized power in 2022 through a coup d'état, this phenomenon reflects growing public admiration for his unconventional leadership style. Traoré has emerged as a central figure in Africa's ongoing struggle for economic justice and sovereignty. He champions beneficiation – the local processing of Africa's raw materials – as a key strategy for reclaiming control over national wealth. Under his leadership, Burkina Faso has begun to assert greater authority over its natural resources, insisting that the benefits of extraction stay within the continent and serve African populations first. By challenging exploitative mining contracts and resisting external influence, Traoré is positioning himself at the forefront of a new generation of African leaders committed to breaking from the status quo. Many have drawn parallels between Captain Ibrahim Traoré and Thomas Sankara, both in ideology and action. Like Sankara, Traoré has captured the imagination of a generation disillusioned with slow-moving democratic institutions, external interference, and deep-rooted inequality. What sets Traoré apart is his governance style – swift, centralised, and action-oriented. In a context marked by insecurity and institutional paralysis, his decisiveness has resonated with citizens frustrated by sluggish government progress. Most strikingly, Botswana's President Duma Boko recently expressed open respect for Traoré's governing style. Speaking candidly about the procedural delays within his administration, he observed: 'While Traoré can wake up, dream it up, and the next morning it is law and action follows, in my context, initiatives are bogged down by layers of procedure, tenders, evaluations, and interdicts that can delay implementation for years. My predecessors did not fail due to a lack of ideas, but because they were unable to act swiftly within structures designed for checks and balances. You need to subvert some of these rules and processes unapologetically, and I will do it, within the confines of the law.' This statement underscores a growing tension in African governance, the friction between ideals of accountability and the pressures of urgent delivery. While institutions were built to constrain excess and ensure due process, they are increasingly viewed even by elected leaders as impediments to reform and action. The 'Traoré Effect' highlights a deeper governance dilemma facing postcolonial states grappling with insecurity, economic stagnation, and popular frustration. Can systems built on liberal democratic ideals function effectively in contexts demanding rapid response and centralised control? And when leaders favour speed over process, what are the implications for long-term stability, the rule of law, and civic space? There is no denying the appeal of quick results, especially in fragile contexts. But history cautions that unchecked executive power, no matter how well-intentioned, can quickly erode the institutional fabric essential for sustainable peace and democratic resilience. Traoré's model may deliver now, but whether it can endure or be emulated without consequence remains to be seen. 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 Leaders like Boko Duma rightly point to bureaucratic bottlenecks as obstacles to swift action, but implementation is not only hindered by red tape, checks and balances, or the need for political inclusion and transparency. The reality is that many African states face serious limitations in technical, institutional, and operational capacity, making it difficult to translate decisions into action. For Traoré and others, the real challenge lies not just in making bold, decisive decisions, but in ensuring those decisions are implemented effectively and ultimately, in assessing whether they produce the intended results. Without addressing the capacity deficit alongside political will, meaningful progress will remain elusive. Traorism Fever, at its core, reflects widespread frustration with the failure of policy implementation across democratic Africa. In democratic systems, implementation often spans years, frequently outlasting electoral cycles. This leaves elected leaders unable to deliver on promises, damaging their credibility and fuelling public disillusionment with democratic governance. Opposition parties and civil society organisations, acting within legal frameworks, often challenge rushed or irregular government decisions in court. While these challenges uphold the rule of law, they also slow down governance. A recent example is South Africa's 2025 budget controversy, where allegations surfaced that the parliamentary committee, in its budget adoption, had bypassed key constitutional and parliamentary procedures in its approval. A parliamentary committee was accused of ignoring constitutional prescripts, leading to legal challenges by opposition parties such as the Economic Freedom Fighters (EFF) and the Democratic Alliance (DA). These parties took the matter to court to stop what they called an 'illicit' budget, asserting that constitutional violations had occurred. While this intervention was necessary to preserve legal integrity, it underscores the governance dilemma: how to maintain constitutional fidelity without paralysing the state's ability to act. The growing admiration for Traorism Fever is a symptom of deeper systemic issues in African governance. It exposes a gap between democratic ideals and administrative reality. When people see authoritarian leaders delivering services or taking action while democratic leaders are bogged down in red tape, their trust in democracy erodes. However, embracing military or autocratic leadership as a solution sets a dangerous precedent. While such regimes may offer short-term decisiveness, they often lack transparency, accountability, and sustainability. Moreover, unconstitutional changes in government undermine the rule of law and create long-term instability. Africa made significant democratic progress in the 1990s and early 2000s. Many nations transitioned from military or one-party rule to multiparty democracies, embracing constitutions, electoral systems, and governance reforms.
Eyewitness News
23 minutes ago
- Eyewitness News
Border Management Authority to release its quarterly report and unveil new security measures
JOHANNESBURG - The Border Management Authority (BMA) is releasing its quarterly report and unveiling new security measures to be implemented at all ports of entry. BMA Commissioner, Michael Masiapato, is expected to unpack the authority's report for the first quarter of the 2025/2026 financial year at a press conference in Pretoria. As part of the briefing, Border Management Authority Commissioner Michael Masiapato will also announce new measures aimed at improving traveller verification systems and enhancing the efficiency of law enforcement operations across the country's borders. The BMA said it is advancing its operations with the introduction of new tools, in line with its ongoing commitment to strengthening the management of cross-border movement. Earlier this week, the authority addressed misinformation about a supposed new law regulating the entry or exit of South African citizens. It has urged the public to verify all travel and immigration-related information via official government channels, including the Department of Home Affairs and the BMA itself.
IOL News
an hour ago
- IOL News
BUSA calls for coordinated action against US tariffs and AGOA challenges
Business Unity South Africa (BUSA) calls on SA government to act amid economic threats as a result of USA tariffs Image: File Business Unity South Africa (BUSA) has called on the South African government to take urgent, coordinated action in response to the new US import tariff and mounting uncertainty over the African Growth and Opportunity Act (AGOA). BUSA expressed concern over the implementation of broad-based import duties by the US and proposals to introduce reciprocal tariffs on countries running trade surpluses with the US, including South Africa. BUSA CEO Khulekani Mathe said the delay in finalising a framework agreement between South Africa and the US to address the proposed 30% tariff is 'particularly troubling.' Mathe noted that countries such as the UK, Japan, Pakistan, South Korea, the Philippines, Indonesia, and blocs like the European Union had already secured trade deals with the US that reduced or eliminated the original 30% tariff. 'This demonstrates that there is an opportunity for a successful agreement to be reached even after 1 August 2025,' BUSA said, 'provided the country adopts a coordinated approach and prepares a solid offer based on what we can realistically deliver in response to US expectations.' The organisation said the US remains a key trade and investment partner for South Africa, and the AGOA trade preferences have underpinned the relationship for over two decades, supporting key export sectors such as agriculture, automotive manufacturing, and mining. 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 BUSA warned that the impact of the new tariff on local industries would be 'substantial.' In the automotive sector, South African exports to the US amount to approximately R24.1 billion. These exports are already subject to a 25% tariff under Section 232, and the proposed 30% hike could push total duties to 55%. According to BUSA, 'approximately 20,000 jobs are at risk in this sector,' including jobs at original equipment manufacturers and component suppliers. In the agriculture and agro-processing sectors, about 15,000 to 20,000 jobs are also threatened. Citrus and nut exports, valued at R4.2 billion and currently duty-free under AGOA, could become uncompetitive due to price increases triggered by the tariffs. 'There is a significant risk of trade being diverted to other regions, such as South America and the European Union,' BUSA added. In the mining sector, about 5,000 jobs are at risk, with diamond beneficiation and iron ore exports likely to be negatively affected. BUSA said mitigation measures for these sectors must be incorporated into the government's response and that sector-specific proposals should form part of the framework deal currently under discussion.
