South Africa says Trump relying on ‘contested' data to raise tariffs
In response to President Donald Trump's decision to re-impose higher taxes on South African exports, President Cyril Ramaphosa's office said the two sides must sit down to assess actual data on trade to avoid misinterpreting facts.
Trump announced on Monday that he will impose a new 30 percent tariff on imports from South Africa, to take effect on August 1.
Trump argued that the trade imbalance favours South Africa because it imposes tariffs on US goods while enjoying privileges under the expiring Africa Growth Opportunity Act (Agoa).
'This 30 percent tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States,' said Ramaphosa's spokesperson, Vincent Magwenya.'Accordingly, South Africa maintains that the 30 percent reciprocal tariff is not an accurate representation of available trade data. According to our interpretation of the available trade data, the average tariff on imported goods entering South Africa is 7.6 percent.'In a letter addressed to President Ramaphosa, Trump said: 'We have had years to discuss our trading relationship with South Africa, and have concluded that we must move away from these long-term, and very persistent, trade deficits engendered by South Africa's tariff, and non-tariff, policies and trade barriers.'Our relationship has been, unfortunately, far from reciprocal. Starting on August 1, 2025, we will charge South Africa a tariff of only 30 percent on any and all South African products sent to the United States, separate from all sectoral tariffs.'South Africa, however, argues, 56 percent of goods enter South Africa at zero percent most favoured nation tariff, with 77 percent of US goods entering the South African market under the zero percent duty.
Under the World Trade Organisation rules, countries are encouraged to treat trading partners the same way when it comes to trading on common items.
The presidency in Pretoria clarified that South Africa remains committed to fostering closer trade relations with the United States in their ongoing negotiations.
This deal addresses issues raised by the US, including South Africa's alleged trade surplus, unfair trade practices, and lack of reciprocity.'South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States. We welcome the commitment by the US government that the 30 percent tariff is subject to modification at the back of the conclusion of our negotiations with the United States,' said Mr Magwenya.
Meanwhile, President Trump stated that if South Africa were to implement higher tariffs in response to his announcement, the additional tariffs would be added on top of the existing 30 percent.
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