Latest news with #Agoa
The Citizen
2 days ago
- Business
- The Citizen
Is the dtic sabotaging its minister?
Parks Tau appears to prefer the audacity of hope rather than the practicality of reality. The minister needs to position the dtic as the engine room for growth, but challenges abound – as does scepticism. Picture: GCIS In an interview last week, PowerFM's Mbuyiseni Ndlozi quizzed Minister of Trade, Industry and Competition Parks Tau about his department's plan to create 6.4 million jobs and support a million small and medium-sized enterprises and 441 000 subsistence farmers through a variety of initiatives it plans to roll out. Ndlozi's proposition to Tau was that members of the Department of Trade, Industry and Competition (dtic) who allow Tau to publish documents stating ambitious and completely unrealistic targets are sabotaging the minister since none of the numbers is remotely feasible. Tau's response centred on the audacity of hope rather than the practicality of reality. ALSO READ: Proudly SA launches online store – here's how to list your business on it The reality … The poor and declining state of various industries in South Africa has contributed to the poor growth and employment outcomes seen over the last two decades. Part of it has been attributed to the natural shifts inherent in some industries on the local and global landscape, and part to the policy and regulatory frameworks which – when well executed – are meant to help affected industries stay ahead of the curve. When they don't work well, such policies contribute to the decline and fall that impacts the nation at large. The dtic's mandate places it at the epicentre of ensuring continuous competitiveness and the creation of support mechanisms for new industries responsive to the issues of our time. ALSO READ: Transformation Fund offers second chance for inclusive reform The hope … Tau's hope for the reindustrialisation of the country lingers on the department's ability to resolve a few difficult conversations, both internally and internationally. On the international front, he has found himself vaulted to the forefront of the frankly impossible conversations regarding South Africa's trade relations with the US. US President Donald Trump has managed to lump his universal disdain for global trade with his now-defunct brotherhood with Elon Musk – who harbours personal disdain for the South African policy framework – in order to launch a tariff and ideological war on the country. Resolving this requires the dtic to navigate through the noise and lead the negotiation towards something resembling a settlement. South Africa's trade relationship has shifted from the favourable model of Agoa (the US's African Growth and Opportunity Act) – which enabled some South African goods to access the US market without tariffs. It now lies at the opposite extreme where tariff rates of 30% to 40% are proposed, with exceptions only made for those items that happen to matter to Trump. Tau's problem is that he is tasked with creating an economic and trade policy solution to a problem whose genesis has little to do with the trade relationship but is premised on various factors and issues far from the ambit of the dtic. President Cyril Ramaphosa's interventions, which have included a visit to the White House and the appointment of an envoy to manage the relationship, have so far borne little fruit. As Trump moved from the erratic tariff model unleashed on his 'Liberation Day' – which saw South Africa hit with a 34% tariff rate that was suspended pending direct negotiations – to the adjusted rate of 30%, it has become increasingly difficult to figure out if South Africa can present anything that placates the Trump administration. The fallout from the tariffs is expected to hit South Africa's exports and, in the absence of a structured solution, decimate some companies whose business models are highly dependent on the US market. ALSO READ: Is government's R100 billion Transformation Fund a pothole or highway to growth? Locally … On the local front, Tau is juggling a few balls on the policy and governance front. Pursuing an industrial policy framework fit for the problems of the day and enabling enough to unleash the country's industrial revival that Tau (and everyone else) covets requires the collaboration of many stakeholders within and outside the state. Finding the right model for collaboration is a difficult task that requires a meeting of the minds between those with an inclination to defend the practices and ideologies of yesteryear – the bureaucrats and politicians – and those with an eye to the future who require instruments that enable them to innovate fast enough to stay ahead of the competitive curve. Instances of delayed approvals or rejections that are subsequently overturned do not assist anyone. Take the proposed transaction between Peermont and Sun International that was abandoned because bureaucrats apparently could not convene a meeting on time to deliberate on the deal, or the Vodacom-Maziv deal that was on and off again. Tau's flagship programme aimed at growing the small- and medium-sized enterprises (SMME ) sector – the R100 billion Transformation Fund – is currently subject to public consultation and deliberations. If it sees the light of day, it might make a dent in the SMME sector, but it is unlikely to get us anywhere close to the employment numbers that underpin the department's mission. ALSO READ: Government called to take the lead in restoring the steel industry Own goals What also doesn't help the department is the range of own goals that keep popping up. In recent days, the dtic decided to refresh the board of the Industrial Development Corporation (IDC), submitting a list to cabinet that was approved. Only after the approval did it emerge that one of the recommended board members happened to not only owe the IDC but is also subject to litigation with the IDC itself. Quite how the vetting process could have missed this glaring anomaly, or why anyone with such a history with the institution would make himself available for a board seat to begin with, remains unclear. But someone has to explain it all if there is to be any sense of faith in the institutions that Tau oversees given their critical role in aiding the country's economic prospects. ALSO READ: DTIC and organised business can improve the business environment – BLSA The messy national lottery situation The fate of the national lottery licence – where Tau eventually announced a winner after a long process of deliberation – is even more murky as losing bidders insist on getting an explanation of how the adjudication was completed. The tender is one of the most lucrative ones in the country and, uniquely, is one of the tenders where there is an explicit expectation to deliver on social responsibility programmes. Any interruption to the continuity of the lottery system disrupts existing social responsibility programmes and creates an opening for more loosely-regulated online options to capture the gambling rands. The complexities of running a lottery are such that deep pockets are needed – and few have the combination of financial resources and technical expertise to get it done. Getting the lotto decision right is one of the processes the dtic should be expected to exercise with a much greater sense of vigilance. The current turn of events, however, indicates that such a threshold has not been met. While a new operator has been appointed, its confirmation as the winner was so late that it simply could not take up the job on the projected date. Such a delay means that the incumbent – Ithuba – has been informed that its term is over, yet the country depends on it to continue running the lotto until the new operator is ready. ALSO READ: GNU: Tau describes 'a new era of collaboration' with big businesses The difficulty with this turn of events is that the dtic – having set the rules for transition – should be explaining how it imagined it could reconcile the late announcement with the transition date if all bidders had explained how long their transition period needed to be either as continuing incumbents or new operators. In the absence of a cogent explanation, the courts have had to intervene and endorse an interim arrangement, which works on the premise that the new operators will be able to start at the end of the interim period. The adjudicators and evaluators appointed to run the process seem to have underdelivered for the dtic and the country. What happens now is that losing bidders are demanding an explanation of how the decision was made and whether it all passes the muster for integrity. Additional questions regarding the evaluation of bidders and the assessment of potential conflicts of interest will naturally emerge as part of the process of discovering how such complex tenders are assessed and whether South Africans get the best value for money. As we wait for the court processes to unfold, Ithuba will continue to run the lottery, which addresses the risk of interruption. ALSO READ: GNU: Tau describes 'a new era of collaboration' with big businesses Can the dtic explain and defend itself? What the dtic does in explaining its processes and defending the integrity of its systems will be an important reflection moment for the dtic: Can it subject its processes to external scrutiny; Will the bidders be able to make peace with how it all happened; and Will the country get to understand how those tasked with critical decisions that bind the nation in such large value contracts actually perform their jobs? If it turns out – as other bidders allege – that much of the processes leave a lot to be desired, Tau's mission to position the dtic as the engine room for the turnaround in the country's fortunes, will unfortunately invite more sceptics for the key future projects that underpin the dtic agenda. This article was republished from Moneyweb. Read the original here.
Daily Maverick
6 days ago
- Politics
- Daily Maverick
Eswatini accepts five ‘uniquely barbaric' foreign criminals deported from US
The deportees, from Cuba, Jamaica, Laos, Vietnam and Yemen, had criminal records which included convictions for murder, homicide and child rape. The Estwatini government has confirmed the arrival of US deportees with criminal records but insisted they posed no threat to the people of the country. US Department of Homeland Security spokesperson Tricia McLaughlin said the deportees, from Cuba, Jamaica, Laos, Vietnam and Yemen, had criminal records which included convictions for murder, homicide and child rape. They were 'so uniquely barbaric that their home countries refused to take them back', she added. Thabile Mdluli, the acting Eswatini government spokesperson, said that 'the government acknowledges the widespread concern' about the prisoners. 'Indeed, five inmates are currently housed in our correctional facilities in isolated units where people with similar offences are kept. The nation is assured that these inmates pose no threat to the country or its citizens.' She said the deportations followed months of engagement between Eswatini and the US, which would collaborate with the International Organization for Migration to return the five men to their countries of origin. She said Eswatini and the US had done 'rigorous risk assessments' to 'ensure the safety and security of citizens'. She added that Eswatini 'adheres to international agreements and diplomatic protocols regarding the repatriation of individuals, ensuring that due process and respect for human rights is followed'. Bheki Makhubu, who edits Eswatini's The Nation, told Daily Maverick he suspected that Eswatini had agreed to accept the convicts in exchange for avoiding US trade tariffs. He noted that the Trump administration had given Eswatini a complete pass on tariffs. 'Why would the US hit Lesotho with [50%] tariffs and leave us alone, unless they were negotiating with us to take their dangerous prisoners?' he asked. However, Makhubu also noted that the African Growth and Opportunity Act (Agoa), which gives Eswatini and other African nations duty-free access to the US market, was due to expire in September, 'so we don't know what Trump might do. But hey, we've been nice to him so perhaps he'll return the favour.' Asked to comment about Makhubu's belief that Eswatini had made a deal to avoid tariffs, Mdluli said, 'Unfortunately, the terms of the agreement remain classified information, so what people say remains just that — speculation.' CBS News reported in May that the US had asked Eswatini, Angola, Benin, Equatorial Guinea, Libya, Moldova and Rwanda to accept migrants who are not their citizens. According to US and other media, the US programme is causing concern as the Trump administration appears to be asking countries regardless of their human rights records. In June, the US flew eight deportees to South Sudan after the US Supreme Court overturned a lower court ban on the grounds that the men had not been given an adequate opportunity to legally oppose their deportations. DM
Daily Maverick
15-07-2025
- Automotive
- Daily Maverick
Socioeconomic crisis looms as US tariffs hit Eastern Cape's vital automotive industry hard
The Automotive Business Council says it is hopeful that a proposal for 40,000 tariff-free vehicles for export to the US will find favour, as the impact of tariffs in their current form will be catastrophic for both the manufacturing industry and the Eastern Cape. 'This is not just a trade issue, it's a socioeconomic crisis in the making,' CEO of the Automotive Business Council (Naamsa) Mikel Mabasa said on Tuesday. The organisation, like many others in the Eastern Cape, is grappling to come to terms with the devastating impact of export tariffs imposed by the United States. Mabasa said the export tariffs threatened thousands of jobs in the automotive sector, disrupted hard-won industrial capabilities, and risked devastating communities such as East London, where the automotive sector formed the economic heartbeat of the town. He said Naamsa was, however, encouraged by South Africa's early proposals for a quota of 40,000 duty-free vehicle units per annum, 'which would allow us to retain our footprint in this key market'. He said that if the country could not retain export markets such as the US, 'we risk turning vibrant industrial hubs into ghost towns'. Ripple effects through the value chain He said the ripple effects of production loss due to disappearing export markets would be felt throughout the automotive value chain – from component manufacturers to logistics providers, and across the thousands of workers and families who depended on the sector for their livelihoods. 'Export diversification and finding new markets is not something that can be achieved overnight. Our global competitors are already redirecting their exports into markets we traditionally serve. This intensifies the pressure on our original equipment manufacturers (OEMs), who must now absorb rising costs, reduce production, and reconsider future investments,' he said. Urgent diplomacy needed 'We have also taken note of President Cyril Ramaphosa's formal response on the same day, which confirmed South Africa's diplomatic and strategic approach to this matter. He said South Africa's automotive sector was particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the US Trade Expansion Act of 1962, which specifically targeted automotive exports. This escalation in trade tensions poses a serious threat to one of South Africa's most globally integrated and export-oriented industries. He said the United States had consistently been South Africa's second-largest trading partner and key export destination for South African manufactured vehicles. Agoa at risk – billions in trade and thousands of vehicles 'Since the inception of the African Growth and Opportunity Act (Agoa), the automotive industry has benefited from substantial two-way trade and investment. In 2024, the auto sector accounted for 64% of all Agoa trade between South Africa and the US, generating R28.6-billion in export revenue, with 24,681 vehicles exported to the US under Agoa,' Mabasa said. He said the effect of just the anticipation of the high export tariffs, however, had been devastating to the industry and had an immediate effect on trade performance. He said that even before the formal effect of the tariffs, vehicle exports to the US dropped by 73% in the first four months of 2025, followed by a further decline of 80% and 85% in April and May, respectively. 'This represents a risk of a direct loss of vehicle and component export volumes, and annual export earnings, which would be difficult to recover in the short term,' he said. OEMs under pressure But the news is even worse, he said, as tariff disruptions placed major pressure on [OEMs], who had made long-standing industrial commitments to South Africa and invested significantly in local manufacturing, skills development and export infrastructure. The SA automotive industry contributes 22.6% of the country's total domestic manufacturing output and directly supports 110,000 formal sector jobs. Mabasa said Naamsa welcomed the SA government's continued diplomatic engagement with the US, including discussions held on the sidelines of the US-Africa Summit in Luanda on 23 June 2025, and the submission of SA's Framework Deal on 20 May 2025 to address the concerns raised by the US government. 'We urge both governments to accelerate negotiations toward a balanced, rules-based trade agreement. We are encouraged by early proposals for a quota of 40,000 duty-free vehicle units per annum, which would allow us to retain our footprint in this key market. It's vital that we use this opportunity to preserve the business case for continued investment', he said. Mabasa, however, emphasised the need to prepare for a more uncertain and competitive global landscape. Behind every statistic are people and communities 'Naamsa is equally concerned about the livelihood impact of these developments. Behind every tariff statistic are real people – auto workers, supply chain technicians, logistics operators and their families. Nowhere is this more visible than in East London, a community that has grown and thrived on the back of automotive exports. 'The erosion of this trade threatens to unravel decades of socioeconomic progress. We urge all parties involved in the diplomatic negotiations to recognise the strategic and social importance of safeguarding mutually beneficial trade frameworks like Agoa, and to avoid short-term decisions that carry long-term consequences for vulnerable regions,' Mabasa said. CEO of the Nelson Mandela Bay Business Chamber Denise van Huyssteen, said it was clear that the US trade tariffs, planned for implementation on 1 August, would have a disproportionate impact on the Eastern Cape economy given its high reliance on the automotive sector. 'The initial most vulnerable automotive and components manufacturers will be those who directly export products to the United States. The tariffs will put them in a very uncompetitive position, making it difficult to continue to do trade with the US, which could lead to export orders drying up. This, in turn, will have a knock-on impact on direct and indirect suppliers located in East London and Nelson Mandela Bay, and the overall supporting ecosystem around these manufacturers, who may or may not be able to withstand the loss in volume. 'Additionally, as the volumes, especially of [OEMs], potentially decline, economies of scale are diminished, potentially putting some components manufacturers in a position where they are unable to continue a viable supply to their other OEM customers located elsewhere in the country,' she said. Competitiveness crisis She said the tariff structure also meant that manufacturers who exported products to other parts of the world may now be competing with other countries that had significant cost advantages over South Africa, as they faced lower tariffs or could absorb the tariffs. 'Essentially, the global trade order has been upended, and this is likely to affect global manufacturing footprints and where the best locations will be to produce products in the future,' Van Huyssteen said. She said that switching markets was not a quick solution as these measures took time to implement, and neither would 'replace' current OEMs with new ones. 'On this score, and in order to retain employment, it is vital that any potential incoming OEM investors commit to utilising local components for their manufacturing operations,' she said. Unemployment warning for Nelson Mandela Bay She said the chamber also remained deeply concerned about the devastating impact these 'tariff wars' might have on Nelson Mandela Bay's economy and the thousands of jobs supported directly and indirectly through the automotive industry and its supply chain. 'This, in turn, will add to the already unacceptably high unemployment and poverty levels in Nelson Mandela Bay and the Eastern Cape. It must be remembered that Nelson Mandela Bay is home to the greatest number of automotive component suppliers in the country. Furthermore, 41% of the country's automotive manufacturing employment is based in the Bay,' she said. Call for government urgency 'Given how small SA's economy is, the country's response should not be to retaliate, but rather to look internally and consider deploying incentives to support local manufacturers, rather than to keep others out by way of tariffs. This should also incorporate policy support and assistance in establishing new markets for SA-produced goods.' She called for urgency on the side of the government. 'The government needs to move fast and take action in addressing barriers such as excessive red tape and complex policies associated with doing business in the country. Absolute urgency is required to improve the country's competitiveness versus other emerging locations, which have, over the years, become much more attractive investment destinations. 'These even include some countries on this continent who have surpassed South Africa in some key performance areas. Priority focus must be placed on ensuring that the basic enablers are in place, such as well-maintained infrastructure, efficient logistics and the delivery of basic services at a local municipal level, to help improve the competitiveness of local manufacturers and to sustain their continued operations in the Bay.' MEC warns Mercedes-Benz may exit Speaking at the Finance Committee in the Council of Provinces last week, Eastern Cape MEC for Finance Mlungisi Mvoko said they had held discussions with the Department of Trade, Industry and Competition (DTIC), as the matter significantly affected the Eastern Cape. He highlighted that Mercedes-Benz, currently exporting 90% of the vehicles it manufactures in East London to the United States, was facing the most risk. Mvoko warned that the company might consider withdrawing from South Africa due to the tariff changes. Mvoko said that if Mercedes-Benz were to leave, it would have devastating consequences for the East London Special Economic Zone (SEZ), where many companies existed solely to supply the vehicle maker. He also made it clear that thousands of families in East London and Qonce were reliant on Mercedes-Benz operations. DM
The Citizen
15-07-2025
- Automotive
- The Citizen
Devastating impact of US tariffs on SA automotive sector even before implementation
South Africa's automotive sector already reflects the devastating impact of the US tariffs and a socio-economic crisis in the making. The announcement and anticipation of the US tariffs already had a devastating and immediate impact on trade performance, even before the tariffs were implemented. Vehicle exports to the US dropped by 73% in the first quarter of 2025, followed by a further decline of 80% in April and 85% in May. Mikel Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa (Naamsa), the Automotive Business Council, says this represents a risk of a direct loss of vehicle and component export volumes and annual export earnings, which would be difficult to recover in the short term. And it is not just the export volumes. Mabasa says this is not just a trade issue, but a socio-economic crisis in the making, as the US tariffs directly threaten thousands of jobs in the automotive sector, disrupt hard-won industrial capabilities, and risk devastating communities, such as East London, where the auto sector forms the economic heartbeat of the town. 'If we cannot retain export markets like the US, we risk turning vibrant industrial hubs into ghost towns.' Mabasa says in a press statement that Naamsa noted the official communication from US President Donald Trump to the South African government last week to notify the country of the unilateral 30% reciprocal trade tariff, as well as President Cyril Ramaphosa's formal response that confirmed South Africa's diplomatic and strategic approach to this matter. ALSO READ: How will the 25% US import tariff affect SA's auto industry? Automotive sector particularly vulnerable to 25% sectoral tariff 'South Africa's automotive sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the US Trade Expansion Act of 1962, which specifically targets automotive exports. This escalation in trade tensions poses a serious threat to one of South Africa's most globally integrated and export-oriented industries.' He says the US has consistently been South Africa's second-largest trading partner and key export destination for vehicles manufactured in South Africa. Since the inception of the African Growth and Opportunity Act [Agoa], the automotive industry has benefited from substantial two-way trade and investment. In 2024, the auto sector accounted for 64% of all Agoa trade between South Africa and the US, generating R28.6 billion in export revenue, with 24 681 vehicles exported to the US under Agoa. The impact is also not on the sector itself, but also on original equipment manufacturers, value chains, and local economy. Mabasa says these tariff disruptions place major pressure on original equipment manufacturers [OEMs], who have long-standing industrial commitments with South Africa and invested significantly in local manufacturing, skills development and export infrastructure. 'The ripple effects of production loss due to disappearing export markets will be felt throughout the entire automotive value chain, from component manufacturers to logistics providers and across the thousands of workers and families who depend on the sector for their livelihoods. ALSO READ: BMW SA 'not exposed' to current US tariff uncertainty Finding new export partners will not happen overnight 'Export diversification and finding new markets is not something that can be achieved overnight. Our global competitors are already redirecting their exports into markets we traditionally serve. This intensifies the pressure on our OEMs, who must now absorb rising costs, reduce production and reconsider future investments.' He points out that the automotive sector is a cornerstone of the economy, contributing an impressive 22.6% to total domestic manufacturing output and directly supporting over 110 000 formal sector jobs. 'The tariffs – and the broader uncertainty in US-Africa trade relations – strike at the heart of South Africa's industrialisation agenda and threaten future investment in high-value manufacturing. They also undermine the significant progress made under Agoa to deepen US-Africa trade.' Mabasa emphasises that Naamsa welcomes government's continued diplomatic engagement with the US, including discussions held on the sidelines of the US-Africa Summit in Luanda in June and the submission of South Africa's Framework Deal in May to address the concerns raised by the US government. 'We urge both governments to accelerate negotiations toward a balanced, rules-based trade agreement. We are encouraged by early proposals for a quota of 40 000 duty-free vehicle units per year, which would allow us to retain our footprint in this key market. It is vital that we use this opportunity to preserve the business case for continued investment.' He says Naamsa continues to engage closely with government counterparts, providing data and strategic insights to support trade negotiations, and is also exploring additional export markets beyond the US urgently. ALSO READ: US tariff of 30% on SA exports: where to now? Time to prepare for more uncertain and competitive landscape in automotive sector Although Mabasa expresses optimism about diplomacy, he emphasises the need to prepare for a more uncertain and competitive global landscape. The US market remains crucial for South Africa, not only for trade flows but also for industrial stability and investor confidence. In addition, Mabasa points out that Naamsa is equally concerned about the impact of these developments on people's livelihoods. 'Behind every tariff statistic are real people – autoworkers, supply chain technicians, logistics operators and their families. Nowhere is this more visible than in East London, a community that has grown and thrived on the back of automotive exports. The erosion of this trade threatens to unravel decades of socio-economic progress. 'We urge all parties involved in the diplomatic negotiations to recognise the strategic and social importance of safeguarding mutually beneficial trade frameworks like Agoa and to avoid short-term decisions that carry long-term consequences for vulnerable regions. 'Naamsa remains deeply committed to South Africa's economic growth and industrial development, and we are optimistic that a constructive path forward will be reached through continued engagement and collaboration.'
The Citizen
15-07-2025
- Business
- The Citizen
SMEs need to brace for reduced orders due to a 30% US tariff
The 30% tariff hike's impact will result in small profit margins, a risk of having to retrench employees, and slower business growth with fewer US sales. As of August 1, a 30% tariff on goods exported to the United States (US) will take effect, placing immense pressure on businesses, particularly small and medium-sized enterprises (SMEs). The automotive sector will be impacted severely by the 30% tariff hike, as the US is a significant export market for cars and car parts. Lula, an SME services provider, stated that businesses supplying parts, logistics, and services to these large manufacturers must brace for reduced orders, intense pressure on pricing, and therefore a significant loss of competitiveness against other exporters to the US, such as Brazil and China, which face only 10% tariffs. ALSO READ: US tariff of 30% on SA exports: where to now? Tariff hike to threaten job security Thomas McKinnon, Chief Growth Officer at Lula, added that the 30% tariff hike's impact will be felt more acutely and quickly by SMEs, as it will result in small profit margins, a risk of having to retrench employees, and slower business growth with fewer US sales. He highlighted that the agricultural and textile sectors, which have relied on the duty-free access provided by the African Growth and Opportunity Act (Agoa), are now left vulnerable. 'The tariff effectively neutralises the benefits of Agoa, jeopardising the livelihoods of thousands, particularly in rural communities that depend on exports of citrus, wine, and speciality textiles.' How can businesses survive with the tariff hike? McKinnon advises SMEs in these industries to shift their focus to reinforcing their unique value proposition while exploring new and emerging markets to absorb the capacity previously destined for the US. 'If your product offers exceptional quality, niche appeal, or a distinct competitive advantage, demand might persist even with higher tariffs.' ALSO READ: Ordinary South Africans will feel impact of US tariffs He added that from now on, every cent counts and businesses need to look for any big or small ways in which they can streamline operations, reduce waste, and negotiate better terms with suppliers. 'The tariffs will have a knock-on effect that we will more than likely see across the board, and SMEs need to be ready and prepared.' Can businesses survive? He said it is essential for businesses to recognise that most people are already financially strained. For instance, South Africans are paying significantly more for electricity after the Eskom tariff hike took effect. Therefore, for businesses to survive, they might need to absorb a portion of these tariff costs to remain competitive, making internal cost-cutting essential for maintaining margins. 'Consider short-term funding options to bridge any potential cash flow gaps during this transition period. Having agile financial solutions in place can provide a crucial buffer as SMEs adapt to the new economic landscape.' NOW READ: Trump's new 30% tariff less about trade and more about power
