South Africa pushes for tariff negotiations with US despite silence from Washington
Image: Independent Media Archives
South Africa's government has reiterated its commitment to secure a favourable tariff deal with the United States, despite a conspicuous lack of communication from Washington D.C.
The looming potential of a 30% levy on South African exports has sparked concern as businesses brace for what could significantly impact trade relations between the two nations.
The Department of Trade, Industry and Competition (the dtic) on Tuesday said negotiations remained the best tool to deal with the issues that are on the table.
The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world.
Tau said the government remained committed to the cause as it awaited substantive feedback from the US counterparts on the final status on its Framework deal.
'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable,' Tau said.
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 ✕
'As the Department of Trade, Industry and Competition, we have been in a period of intense negotiations with the United States. We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US.
'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios. We have planned for these scenarios and have not sat idle.
'We are working with other government departments on a response plan which includes a support desk within the dtic. Our response package also focuses on demand side interventions in the impacted industries.'
Tau said South Africa's Framework deal to the US featured a number of areas including and not limited to importing 75-100 petajoules of Liquified Natural Gas for a 10 year period, which would unlock $12 billion; agricultural market access by simplifying of US poultry exports under the 2016 tariff rate quota and unlock approximately $91 million in trade.
In addition, readiness to open market access for blueberries subject to necessary protocols. Tau said South African firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agrimachinery.
The Framework also proposes an exemption of specific sectors from reciprocal tariffs to preserve supply chains such as ship building, counter-seasonal agriculture trade, exports from Micro, Small and Medium Enterprises of less than $1m per annum.
'The way forward is clear. President [Cyril] Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial,' tau said.
'The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper.'
Meanwhile, Presidential Special Envoy to North America, Mcebisi Jonas, on Tuesday said there's a pressing need for South Africa to diversify its export markets, moving beyond traditional trading partners to engage with emerging powers in Asia, the Middle East, and Latin America.
Speaking at a seminar hosted by the Kgalema Motlanthe Foundation, said the African Continental Free Trade Area has shown promise, yet current crises underscored the need for more robust regional integration efforts to improve economic resilience and collaboration.
'Export diversification is a key imperative that South Africa should take up as part insurance against market concentration, but also as a source of resilience. For South Africa and Africa as a whole, the economic implications of China's growth and consequent reconfiguration of the global economy are somewhat contradictory. China has become a large investor in African development,' Jonas said.
'The USA remains a central player in global development. South Africa's relationship with the US is crucial. And it is not transactional. But based on a long partnership rooted in shared values of democracy, justice, and progress. In the immediate term, South Africa is engaged in negotiations with the US to reach a solution on the tariff impasse. But beyond that, I think there is a conversation going on improving the relations between the two countries.'
BUSINESS REPORT
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
43 minutes ago
- The South African
Donald Trump hits South Africa with 30% tariffs - the HIGHEST in Africa
US President Donald Trump has announced that South African goods will be hit with a 30% tariff starting on 7 August, in a move that threatens to derail one of the country's most critical trade relationships. The tariffs mark the highest imposed on any sub-Saharan African nation, and come amid increasingly strained diplomatic ties between Trump and South African President Cyril Ramaphosa. The decision is a major blow to South Africa, whose exports to the United States – its second-largest trading partner – are vital for industries such as automobiles, agriculture, textiles, and wine. Until now, these sectors had enjoyed duty-free access to the US under the African Growth and Opportunity Act (AGOA). That arrangement, introduced in 2000 to boost African economic development through trade, now appears effectively terminated ahead of its scheduled review in September. In a sweeping move, the US has also imposed tariffs on other African nations: 30% for South Africa, Algeria, Libya for 25% for Tunisia for 15% for Nigeria, Ghana, Lesotho, Zimbabwe , Angola, Botswana, Cameroon, Chad, Côte d`Ivoire, DR Congo, Equatorial Guinea, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Uganda , Zambia for , , 10% for Kenya, Ethiopia Trump argues the tariffs are necessary to protect American jobs and industry, stating: 'African countries have had a free ride. It's time for fair trade.' President Ramaphosa responded by confirming that negotiations are ongoing, with a framework trade deal already submitted to US officials. That deal reportedly included: Purchasing US liquefied natural gas Easing poultry import rules $3.3 billion investment into US sectors like mining Ramaphosa also announced that a domestic support package is being finalised to help South African firms most vulnerable to the new tariffs. 'We are deeply concerned about the implications of this decision on jobs and investment. Our priority is to protect South African industries and workers,' the president said. Some exceptions have been made for strategic exports, including pharmaceuticals, copper, semiconductors, stainless steel scrap, and certain energy products. US-South Africa relations have sharply deteriorated under the Trump administration. The US president has cut all aid to the country and accused it of discriminating against its white minority – a claim South Africa has strongly denied. Ramaphosa's attempt to mend ties at a May meeting with Trump appears to have failed. This week, Trump hinted he might skip the G20 Summit in Johannesburg, saying: 'I've had a lot of problems with South Africa. They have some very bad policies.' South Africa's wine industry – with the US its fourth-largest export market – warned that the 30% tariff puts it at a 'severe disadvantage' compared to countries still enjoying lower or no duties. Industry body Wines of South Africa has urged both governments to resolve the issue swiftly, warning of long-term damage to trade, jobs, and investment. With just days to go before implementation, pressure is mounting on Pretoria to either strike a deal or cushion the blow – as businesses brace for a sharp economic impact and possible job losses. Afghanistan – 15% Algeria – 30% Angola – 15% Bangladesh – 20% Bolivia – 15% Bosnia and Herzegovina – 30% Botswana – 15% Brazil – 10% Brunei – 25% Cambodia – 19% Cameroon – 15% Chad – 15% Costa Rica – 15% Côte d`Ivoire – 15% Democratic Republic of the Congo – 15% Ecuador – 15% Equatorial Guinea – 15% Falkland Islands – 10% Fiji – 15% Ghana – 15% Guyana – 15% Iceland – 15% India – 25% Indonesia – 19% Iraq – 35% Israel – 15% Japan – 15% Jordan – 15% Kazakhstan – 25% Laos – 40% Lesotho – 15% Libya – 30% Liechtenstein – 15% Madagascar – 15% Malawi – 15% Malaysia – 19% Mauritius – 15% Moldova – 25% Mozambique – 15% Myanmar (Burma) – 40% Namibia – 15% Nauru – 15% New Zealand – 15% Nicaragua – 18% Nigeria – 15% North Macedonia – 15% Norway – 15% Pakistan – 19% Papua New Guinea – 15% Philippines – 19% Serbia – 35% South Africa – 30% South Korea – 15% Sri Lanka – 20% Switzerland – 39% Syria – 41% Taiwan – 20% Thailand – 19% Trinidad and Tobago – 15% Tunisia – 25% Turkey – 15% Uganda – 15% United Kingdom – 10% Vanuatu – 15% Venezuela – 15% Vietnam – 20% Zambia – 15% Zimbabwe – 15% Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
an hour ago
- IOL News
Hope for change: Msunduzi ratepayers welcome Simon Mndebele's leadership
Msunduzi Municipality Manager, Simon Mndebele and Mzimkhulu Thebolla, Mayor of Msunduzi. Image: Msunduzi Municipality Msunduzi Municipality ratepayer associations are looking forward to a fresh and effective approach from new municipal manager Simon Mndebele to turn the city's fortunes around. Mndebele, who was appointed as the manager on Friday, was described by Mzimkhulu Thebolla, Msunduzi's mayor, as pivotal to reposition Msunduzi as a municipality that is responsive, financially stable, and people-centred. Mndebele previously served as a technical support expert for Msunduzi Municipality, deployed by the KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs (COGTA). Mndebele also served as municipal manager at Govan Mbeki Local Municipality and director in its Corporate Services department at Chief Albert Luthuli Municipality. 'In this capacity, he led the development of the municipality's turnaround strategy, conducted diagnostic analyses, and helped establish critical performance oversight structures. His in-depth knowledge of Msunduzi's operational landscape provides a solid foundation for decisive leadership from day one,' Thebolla said. 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 ✕ He added that with his leadership, Msunduzi aims to fast-track infrastructure development, improve basic services, strengthen financial controls, and restore institutional stability. Thebolla called upon all stakeholders to rally behind Mndebele and support his mission to lead a clean, capable, and service-driven administration. Jimmy Naidoo, chairperson of the Northern Areas Residents and Ratepayers Association (NARRA), stated that over the years, they have not had a municipal manager who has completed their term or addressed the core challenges that ratepayers face—particularly those related to billing systems, policy implementation, and credit control. 'We are hopeful that the newly appointed manager will take decisive and aggressive steps to fix the ongoing issues in the billing cycle. It is also crucial that accountability is enforced and that there are clear consequences for non-performance across all departments. We look forward to seeing whether he will bring a fresh and effective approach—one that finally delivers where others have fallen short,' Naidoo said. Msunduzi Association of Residents, Ratepayers and Civics (MARRC) CEO Anthony Waldhausen is concerned that the Govan Mbeki municipality was issued with a disclaimer notice for three financial periods from 2017/2018, 2018/2019, and 2019/2020 by the Auditor General. Waldhausen stated that Msunduzi had a revolving door where municipal managers have not served their full terms of office. 'Did the selection committee for the municipal manager conduct a thorough due diligence report to ensure that no other red flags were missed? Since 2010, we have had over five municipal managers, some left with a cloud over their heads from supposed suspension, and then to have the suspension overturned or withdrawn,' Waldhausen said. Waldhausen called for a professional, effective, and competent municipal workforce that can provide service delivery and development to the citizens of Pietermaritzburg, but it must be free from any form of political interference and internal factionalism. The MARRC stated that they would work with Mndebele to turn the fortunes of Pietermaritzburg around for the better. 'We call on the mayor and council to allow the municipal manager to do his job without fear and favour,' said Waldhausen. Waldhausen said that MARRC submitted a discussion document on the White Paper on Local Government, calling for an overhaul of local government. 'One of the suggestions is to make the selection and appointment of the municipal manager and senior management positions to be done in the public space, and to have the selection and appointment of the municipal manager and senior management positions conducted in the public space,' he said.
Eyewitness News
an hour ago
- Eyewitness News
Govt intervening to cushion blow of harsh US tariffs on local businesses
JOHANNESBURG - President Cyril Ramaphosa said the government is working on a set of interventions to cushion the blow of the harsh US tariffs on local businesses. The announcement on possible aid for South African exporters comes as Pretoria continues to negotiate with Washington for more favourable trade terms. Goods entering the US from South Africa face a 30% duty. US President Donald Trump signed a fresh executive order on Thursday, modifying some reciprocal tariff rates initially set out on April 2nd. The new order takes effect in a week's time, on 7 August. READ MORE: In it, Trump said, 'Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signalling their sincere intentions to permanently remedy the trade barriers.' President Cyril Ramaphosa said that while horse trading continues behind closed doors, South Africa is already considering interventions for affected industries. 'We're going to support our companies through negotiations, but also, there are other interventions we are working on to cushion the blow to our companies. Our objective is to save jobs; we want to preserve jobs for those companies that are going to be adversely affected.' Agriculture, especially citrus and the automotive sector, is among those expected to take the hardest knock, while some products remain on a list of exemptions, including some mining commodities. Additional multimedia reporting by EWN's Simphiwe Nkosi
