South Africa seeks US trade deal after Trump's 30% citrus tariff
President Cyril Ramaphosa described the tariff as based on a 'contested interpretation' of trade relations between the two nations. He emphasized ongoing diplomatic efforts to secure a fairer deal. 'South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States,' Ramaphosa stated.
South Africa argues that US exports face an average duty of 7.6%, with 77% of American goods entering the country tariff-free. The government has urged local businesses to diversify their markets to reduce dependence on US trade.
The US is South Africa's second-largest trading partner after China, with key exports including agricultural products, precious metals, and vehicles. The citrus industry, however, stands to lose the most. Boitshoko Ntshabele, head of the Citrus Growers' Association, warned that the tariff could eliminate 35,000 jobs, particularly in vulnerable rural communities.
South Africa ranks as the world's second-largest citrus exporter after Spain. A sudden drop in US demand could lead to oversupply and falling prices, further destabilizing the sector.
The tariff adds to existing duties on South African automobiles, steel, and aluminum. A 25% levy on car exports, imposed in April, has already reduced shipments by over 12% year-on-year. Mercedes-Benz, one of the affected automakers, paused production at a local plant for more than a month due to declining US demand.
Initially, South African citrus and auto exports enjoyed tariff-free access under the African Growth and Opportunity Act (AGOA). The new measures mark a significant shift in US trade policy, raising concerns over long-term economic impacts. - AFP
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