GNU must take blame for not acting to avert imposition of Trump's exorbitant tariffs

Daily Maverick

17 hours ago

The recent decision by US President Donald Trump to increase tariffs from 10% to 30% on most South African imports, effective this past Friday, 1 August 2025, is a damning indictment of our foreign policy shortcomings.
At the heart of this unfolding crisis is the African Growth and Opportunity Act (Agoa), which for nearly 25 years has given South African goods duty-free access to US markets. In 2023, more than $3-billion worth of exports flowed to the US under Agoa, sustaining jobs and livelihoods in key industries such as automotive manufacturing, agriculture, and mining.
It's difficult to overstate just how beneficial Agoa has been. The US is South Africa's second-largest export market, and Agoa alone accounts for more than $2-billion in exports annually. Entire value chains are built on this preferential access. This has resulted in tens of thousands of jobs created and maintained in export-related industries, especially in the automotive and agricultural sectors.
Yet, what once felt like abstract diplomatic tensions have now resulted in exorbitant tariff hikes that could wipe out margins for exporters and put thousands of jobs at risk across key sectors — from citrus and wine to auto manufacturing and metals.
While some may point fingers at an increasingly protectionist White House, the Government of National Unity (GNU) must accept responsibility for what is in most parts a self-inflicted wound. Those in the GNU say that jobs and the economy are their number one priority.
But when it came to protecting one of our largest export markets and tens of thousands of South African jobs, they sat on their hands and watched the tariffs roll in. This diplomatic misstep will be measured in job losses, declining export revenue, and dwindling investor confidence.
Instead of strategic engagement, disarray ensued. Civil society organisations like AfriForum and Solidarity secured high-level meetings in Washington, while our official diplomatic presence remained directionless.
Undermining national trade posture
Even the Democratic Alliance was accused of undermining our national trade posture through uncoordinated political freelancing, a move that seemingly cost MP Emma Powell her role as the DA's International Relations spokesperson.
At the core of Washington's growing frustration is South Africa's erratic and often contradictory foreign policy. Despite claiming to be non-aligned, our government has taken deliberate steps that signal the opposite.
The ANC's hosting of senior Hamas representatives in Pretoria, Minister Naledi Pandor's infamous meeting with then Iranian president Ebrahim Raisi, and South Africa's ambiguous stance on Russia's war in Ukraine have all sent provocative messages that clash with global democratic norms. These actions carry real-world consequences, as this latest tariff decision makes painfully clear.
Even under the more diplomatic Biden administration, South Africa failed to rebuild trust. We did not use the opportunity to engage, negotiate or reassure.
And now, under a more transactional Trump presidency, patience has run out.
What is clear is that South Africa urgently needs a foreign policy rooted in clear principles and strategic interests, instead of nostalgia and ideology.
Our diplomacy must be led by the state, above party politics, and laser focused on three core objectives: expanding trade and economic growth, defending human rights, and advancing democracy on the continent and beyond. The current bipolar approach, with mixed signals from different actors, is unsustainable and deeply damaging.
A government-led, coherent strategy to stabilise and grow our trade relationship with the US is now mission-critical. This strategy must include five immediate actions:
South Africa must reassert official leadership in managing our engagement with Washington. Splinter groups and political parties must refrain from back-channelling for narrow political gain. Trade policy is national policy. South Africa must speak with one clear, credible, and united voice.
Our government must directly engage with the US Congress, which holds immense sway over trade legislation. Lawmakers on Capitol Hill need to hear not just about Agoa's benefits for South Africa, but for the US too. More than 500,000 American jobs are tied to trade with us. We should use that as leverage.
South Africa must table a credible trade and investment plan that showcases the mutual benefits of partnership. Priority sectors like automotive exports (valued at more than $1.2-billion annually), citrus, wine, metals and green technology must be at the forefront. We must position ourselves as a reliable partner for US capital, technology, and innovation as America eyes new partners in the global energy transition.
A full economic risk assessment must be urgently commissioned to measure the impact of the proposed tariffs on jobs and industry. Such a study would not only quantify the damage, but guide our negotiating position and enable smarter policy responses, including sector-specific relief or adjustment mechanisms.
Perhaps most urgently, we must appoint a capable and credible ambassador to Washington. This needs to be someone who understands both diplomacy and economics. The job now requires high-stakes negotiations to restore market confidence and protect jobs. That seat has remained vacant or ineffective for far too long.
The truth is that South Africa's foreign policy has long lacked a future-focused economic dimension. It is too often discussed not in terms of trade, growth or a digital future, but in the context of how liberation movements can remain in power.
This mindset has locked us into outdated alliances, including with authoritarian regimes that are neither democratic nor innovative. Meanwhile, we've neglected crucial relationships with long-standing partners like the US, and failed to appoint ambassadors, attend key forums or secure investment guarantees.
What is clear is that we cannot afford to respond with more muddled messages, delayed decisions and ideological posturing. If we do not act with clarity, urgency and humility, we risk permanently losing one of our most important trade relationships.
Now more than ever, our foreign policy must serve South Africa's economic interests. Jobs, industries and future growth hang in the balance. DM