Revised trade offer is on its way to US, says trade minister Parks Tau
Briefing reporters in Pretoria on Tuesday, Tau said the cabinet has endorsed an economic response package and revised offer that will be sent to the US trade representative's office with the hope of resolving the trade impasse.
'Cabinet has approved South Africa submits a revised offer as a basis for negotiations with the US. The new offer builds on the offer submitted in May 2025. The new offer substantively responds to the issues the US has raised in the 2025 National Trade Estimates Report,' he said.
US President Donald Trump announced 30% "reciprocal" tariffs on South Africa in April, but later suspended them for 90 days.
A deadline was set for the beginning of August to arrive at a trade agreement framework, but the tariffs came into effect last Thursday.
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Isondo Precious Metals' fuel cell plant in the OR Tambo SEZ proves this viability.' ALSO READ: South Africa faces 25% tariff on US car imports, Minister Parks Tau voices concern Is innovation the answer for automotive industry? Turning to innovation, Tau said global competitiveness hinges on embracing disruption. 'We have been on a path of developing a new industrial policy which focuses on decarbonisation, digitisation and diversification and we follow the example of players in the auto sector. 'In the area of digitisation, Eastern Cape pioneers like S4 and Jendamark demonstrate how AI and automation can future-proof operations.' In decarbonisation, Tau said Borbet SA's 20-year solar energy commitment and Malben Engineering's green steel pilot project align with global carbon rules reshaping trade. As NAACAM notes, carbon has become 'part of the cost of doing business – and increasingly, part of the value too'. 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Therefore, we are hopeful that the industry will support the endeavour of the Transformation Fund that we are pursuing at the dtic with the view to enhance overall transformation through enterprise and supplier development (ESD) funds.' ALSO READ: US tariffs: SA sends new proposal but no changes to laws Tau emphasised that South Africa must accelerate skills development to ensure that we prepare our labour force for the dramatic changes that artificial intelligence will bring into the sector. 'It is therefore critical that we partner with institutions in the country to address this urgently. 'Entrenching supply chain equity through initiatives like linking equity investments to procurement from black-owned tier 2/3 suppliers will create symbiotic growth. As government, we are also working hard to eliminate compliance burdens and reduce red tape which inhibits investment in our country's automotive sector. 'Our policy response is accelerating and we plan on introducing an Omnibus (general laws amendment) Bill to fast-track high-impact investments and projects within 90 days. This is but one of the ambitious plans we have for the medium-term. ALSO READ: 'Open our eyes and ears' – Ramaphosa on how to tackle US tariff hike on SA cars ITAC to look into impact of exports on automotive industry 'We will also, through the International Trade Administration Commission (ITAC), look at the impact of imports into the country and the impact they have on local production. We want to grow the sector and therefore our first option must not be to wield a stick but rather offer a carrot to these companies to attract more investment into the country, increasing the value-add of particularly our component manufacturers.' Tau pointed out that the Eastern Cape produces 46% of South Africa's vehicles and 54% of its exports, epitomising our potential. Therefore, he said, everyone has the responsibility to reignite the collective ambition that drives NAACAM's advocacy. 'With South Africa chairing the G20, our automotive sector can model African industrial resilience rooted in localisation, powered by innovation and fortified by equity.'
