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IOL News
8 hours ago
- Business
- IOL News
Trump Tariffs: SA throws blueberries into the US trade deal basket as time runs out
In a July 7 statement announcing the latest trade tariff deadline, the White House said, 'Trump is the best trade negotiator in history.' Image: Peter Zay / AFP Overnight, hopes of a trade deal between South Africa and the US were further dashed, as many commentators have already written off any chance of lowering the pending 30% export duty set to take effect on Friday. Speaking on CNBC's Squawk Box late yesterday South African time, US Commerce Secretary Howard Lutnick confirmed that US President Donald Trump's August 1 deadline to impose major tariffs on several trading partners would not be delayed. Lutnick said Trump 'holds all the cards' and has no reason to back down. 'So now the price of a deal with the United States of America is black and white, completely open markets,' he told CNBC. 'He wants to make sure that Americans can sell their goods overseas'. 'So, are there deals on the table for him to consider? Yes,' Lutnick told the news station, adding that Trump 'knows that he can just set the rate and set the price and move on'. This came as Trade, Industry and Competition Minister Parks Tau reiterated late yesterday that South Africa was still working to secure a deal. 'Our view is that negotiations remain the best tool to deal with the issues that are on the table,' Tau said in a statement. Most commentators, however, do not expect a deal to be signed before Friday. Tau said the Department has been engaged in 'intense negotiations' with the US. 'We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US,' he said. Among South Africa's concessions is 'open market access' for blueberries. Yet, Tau conceded that a 'reset' in South Africa's already strained relationship with the US is inevitable. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between the US and South Africa, and a reset is unavoidable,' he said. Earlier this month, dozens of countries received letters from the US President's Office stating that Trump was imposing tariffs to protect America's sovereignty and because of what he described as massive trade deficits. South Africa, however, has disputed his calculations. Trump has also threatened an additional 10% tariff on any country aligning with BRICS nations' policies. 'Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,' he wrote on his Truth Social platform. South Africa has 'no intention of decoupling from the United States,' Tau said, adding that the country had decided not to retaliate. Trump, however, has warned that any retaliation would trigger even higher tariffs. In a July 7 statement announcing the latest deadline, the White House said, 'Trump is the best trade negotiator in history.' IOL Business
Eyewitness News
12 hours ago
- Business
- Eyewitness News
BRICS' criticism brings Trump 10% tariff threat
RIO DE JANEIRO - US President Donald Trump threatened China, India, and some of the world's fastest-emerging economies with higher import tariffs, hitting back at BRICS' criticism of his trade policies as the bloc meets Monday. The 11-nation grouping - which also includes US allies Brazil, Saudi Arabia, and Indonesia - is concluding a two-day summit in Rio de Janeiro. On Sunday, BRICS leaders described Trump's stop-start tariff wars as "indiscriminate", damaging, and illegal, drawing a quick rebuke from the pugilistic US president. "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump wrote on social media. BRICS members account for about half the world's population and 40 percent of global economic output. Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to US influence. But it is an expanding and often divergent grouping - bringing together arch US foes like Iran and Russia, with some of Washington's closest allies in Latin America, the Middle East, Africa, and Asia. Some US allies inside the bloc had tried to blunt criticism by not mentioning Trump by name in their summit statement. Saudi Arabia - one of the world's biggest purchasers of US high-tech weapons - even kept its foreign minister away from Sunday's talks and a BRICS "family photo" of leaders, seemingly to avoid Washington's ire. But such diplomatic gestures were lost on the US president. In April, Trump threatened a slew of punitive duties, before backing off in the face of a fierce market sell-off. Now he is threatening to impose unilateral levies on trading partners unless they reach "deals" by August 1, with BRICS nations seemingly getting higher tariffs than planned. It cannot have helped that BRICS leaders also condemned the recent US and Israeli bombing of Iran's nuclear facilities - a show of solidarity with fellow member Iran. Beijing on Monday insisted BRICS was not seeking confrontation with the United States. "China has repeatedly stated its position that trade and tariff wars have no winners and protectionism offers no way forward," foreign ministry spokeswoman Mao Ning said. Beijing also defended the bloc as "an important platform for cooperation between emerging markets and developing countries". "It advocates openness, inclusivity, and win-win cooperation," Mao said. "It does not engage in camp confrontation and is not targeted at any country," she said. The political punch of this year's summit has been depleted by the absence of China's Xi Jinping, who skipped the meeting for the first time in his 12 years as president. The Chinese leader is not the only notable absentee. Russian President Vladimir Putin, charged with war crimes in Ukraine, also opted to stay away, participating via video link. He told counterparts that BRICS had become a key player in global governance.
Daily Maverick
2 days ago
- Business
- Daily Maverick
SA must take drastic action to avert US tariffs deadline and unblock investment
South Africa's strategy on striking a trade deal with the US must be based on what South Africa needs to raise economic growth; to develop domestic sectors critical to the world economy and what the US needs for economic growth that the US currently does not have; and unblocking obstacles to foreign investment in South Africa that undermines not only US investments, but other foreign investments as well. South Africa will have to offer US President Donald Trump's administration concessions that will work for the US broadly, or for Trump specifically, to secure a tariff deal. South Africa must proactively offer the US opportunities. Countries like Vietnam, India and Indonesia proactively did so. The questions South Africa must ask in its tariff negotiations with the US are what does the US have that South Africa lacks and is critical to South Africa's economic growth; and what does South Africa have that is essential to US economic growth? South Africa is seeking to fend off a looming 30% US tariff on its products, and the deadline is 1 August. In May, a 25% import tax on car parts came into force in the US. This was on top of a 25% import tax on cars, which came into effect in April. These two automotive tariffs hit South Africa's car manufacturing industry. In June, the US doubled tariffs on foreign steel and aluminium imports to 50%. Before the BRICS+ Summit two weeks ago, US President Donald Trump said the US would impose an additional 10% tariff on any countries aligning themselves with the 'Anti-American policies' of BRICS+. 'There will be no exceptions to this policy,' Trump said. South Africa is a member of the 10-nation BRICS+ group. Early this year, Trump threatened a '100% tariff' on 'hostile' BRICS+ countries that support a common currency to rival the US dollar. South Africa is in real danger of being caught in Trump's anti-BRICS+ war. On Tuesday, US lawmakers advanced a bill that would sanction leaders of the ANC over 'corruption or human rights abuses'. The US House Committee on Foreign Affairs voted 34-16 to send the 'US-South Africa Bilateral Relations Review Act' to the full House of Representatives, where it could be subject to a vote. The measure would need to pass both the House and the Senate before it could be signed into law. 'America abandoned' The bill was introduced in April by Ronny Jackson, a Republican congressman who said that 'South Africa made its choice when they abandoned America and our allies and sided with communists and terrorists'. With a 1 August deadline looming for South Africa to strike a trade deal with the US, and the US now targeting ANC leaders with sanctions for their 'anti-American' stances, securing a tariff deal by 1 August appears nigh on impossible. One option is for South Africa to ask for an extension of the deadline. South Africa urgently needs to establish a task team, like Japan, to conduct a fast-paced negotiation. South Africa's strategy must be to have South African business leaders who trade with the US leading a negotiation task team, supported by government officials. ANC officials must not be part of these negotiations as the US is gunning for many ANC figures. Trump has made energy a key part of the US negotiations. South Africa has an energy crisis — which is undermining foreign investment, business creation, economic growth and therefore job creation, poverty reduction and inequality reduction. The US is the world's largest liquefied natural gas (LNG) exporter. South Africa has rightly offered to buy liquefied natural gas from the US over a 10-year period as part of proposals to secure a trade deal. In President Cyril Ramaphosa's meeting with Trump, the Presidency said that importing 75 to 100 million cubic metres of LNG from the US would 'unlock approximately $900-million to $1.2-billion in trade per annum and $9-billion to $12-billion for 10 years based on applicable price'. South Africa would import between 75-100 petajoules, roughly 75 to 100 million cubic metres, of LNG per year from the US. The US production of aluminium has been declining for decades, leaving the country's auto industry reliant on imports. Canada is the largest supplier of primary aluminium to the US, accounting for 75% of the material consumed there, according to the US Aluminum Association. Aluminium is a lightweight and effective conductor of electricity, making it useful in many transportation and energy systems applications. Aluminium is one of 50 'critical minerals' identified by the US Geological Survey. In 2021, South Africa produced about 720,000 tons of refined aluminium, becoming the largest aluminium -producing country in Africa, according to Aluminium Federation of South Africa CEO Muzi Manzi, who added that 'a large proportion of the primary metal produced is used in the local market as remelt ingots to produce castings and powders, with the rest of the metal destined for exports'. Metal of choice Aluminium is the metal of choice in both internal combustion engines and electric vehicles because of its lightweight properties, which allows vehicles to be fuel efficient, and is a key metal in the green value chain. Aluminium is also used in packaging because it is a more environment -friendly option than many other materials. Aluminium is also used to make buildings green, and is used in the manufacturing of 'green' window and door frames, because of the material's ability to balance internal climate conditions. It is a key part of renewable energy projects, such as solar or wind power infrastructure and inputs. Aluminium can be recycled and South Africa needs to develop a local aluminium recycling and processing industry. South Africa can offer the US aluminium — which would serve the interests of the US. In 2022, South Africa was the 27th largest crude steel producer globally, according to the World Steel Association, but South Africa's steel production has declined in the past few years. State Capture, lack of pragmatic industrial policies, and increased competition from cheap Chinese state-subsidised steel has undermined the industry. South Africa's steel industry has to a large extent failed to adapt to technological advances — steel producers around the world have moved towards more low-carbon, energy-efficient production, while South Africa's production is still using apartheid-era manufacturing processes, such as old blast furnace technology. State, infrastructure and policy failure because of corruption, incompetence and ideological policies have undermined South Africa's economic sectors, including aluminium and steel production and exports. According to a document from the Presidency, South Africa has proposed a duty-free quota of 385 million kilogrammes for steel per year and 132 million kilogrammes of aluminium per year to the US. The US desperately needs critical minerals and rare earth elements, which are dominated by China. South African can offer the US access to both critical minerals and rare earths. South Africa's Expropriation Law, which makes provision for expropriation without compensation, must be withdrawn. Contrary to popular arguments that the expropriation without compensation law will not lead to mass expropriation, property rights involve not only land, but also intellectual property, pensions and the shares and bonds of locals and foreigners, including US citizens. South Africa must also cancel the current Black Economic Empowerment (BEE) model that gives slices of local and foreign companies to politically connected 'political capitalists', and replace BEE with alternative empowerment models, such as the employment of youth, building of public infrastructure, transferring technology and skills, supporting STEM subjects (Science, Technology, Engineering and Maths) at black schools, and giving opportunities to manufacturing SMEs. DM This is an extract from Professor William Gumede's talk at the recent Inclusive Society Institute webinar on 'Building US-Africa relations under the Trump administration and its nexus with China'.
Sky News AU
22-07-2025
- Business
- Sky News AU
Foreign Minister Penny Wong says managing China-US relationships like ‘walking a tightrope'
Foreign Minister Penny Wong has described managing diplomacy with China and the US as a 'tightrope' amid growing scrutiny of the Albanese government's international strategy. Foreign Minister Penny Wong has acknowledged the difficulty of managing diplomatic relationships with China and the US, describing it as like 'walking a tightrope'. China has increased its global diplomatic reach in recent months as President Donald Trump's administration pares back America's international presence. Amid this balancing act, the Albanese government has been accused both of letting ties with the US weaken and of leaning too heavily into its relationship with China. 'I think diplomacy is often a tightrope,' Ms Wong told Sky News on Tuesday. 'In terms of the United States, they are our ally. They're our principal strategic partner. They are also our largest investment partner. None of that changes. 'China is our most important trading destination. And it is such an important power in our region. We know that there are times where we will disagree with what China articulates. 'But the world is not only those two relationships.' She emphasised that the government's foreign policy aim is to 'advance Australia's interests in all circumstances' - balancing cooperation and disagreement. 'We obviously live in a region where China is a very, very substantial power. We are also a US ally,' Ms Wong said. She also addressed points of disagreement with China, citing human rights issues and differences over international law, including the UN Convention on the Law of the Sea. 'China seeks to become a predominant power in our region. Australia wants a balance, where no country dominates and no country is dominated,' she said. The remarks come amid ongoing scrutiny over Prime Minister Anthony Albanese's six-day diplomatic visit to China, which drew criticism for its perceived softness. — Anthony Albanese (@AlboMP) July 16, 2025 Shortly before the trip, President Trump said the US would impose additional tariffs on any country aligning themselves with the 'Anti-American' politics of the BRICS group. The BRICS organisation includes Brazil, Russia, India, China and South Africa. Critics argued that Mr Albanese taking the trip to China before having met President Trump sent a bad signal about the government's approach to international affairs. His itinerary included visits to a Giant Panda breeding centre and the Great Wall of China, alongside dining with President Xi Jinping. Former home affairs secretary Mike Pezzullo suggested Mr Albanese should have pursued a 'shorter, sharper' visit with 'blunt' discussions on Taiwan. Shadow Finance Minister James Paterson described the trip as 'indulgent', questioning whether 'a visit to Chengdu to pose with some pandas' was 'strictly necessary'. Mr Albanese defended the trip, calling it 'worthwhile' given the agreements signed on trade and tourism, and stressing the importance of fostering 'a stronger relationship'. On Australia's alliance with the United States, Ms Wong reaffirmed the importance of the partnership, describing the US as 'our principal strategic partner'. She highlighted the broader regional strategy, noting that engagement extends beyond the US and China to include countries such as Japan, India, and South Korea. The Foreign Minister also reiterated Australia's commitment to the AUKUS defence pact, calling it a 'win-win-win' for Australia, the US, and the UK.
TimesLIVE
21-07-2025
- Business
- TimesLIVE
Brics would end quickly if they 'ever form in meaningful way': Trump
US President Donald Trump on Friday repeated his threat to slap a 10% tariff on imports from members of the Brics group of developing nations and said the group would end very quickly if they ever formed in a meaningful way. 'When I heard about this group from Brics — six countries, basically — I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly,' Trump said without naming the countries. 'We can never let anyone play games with us.' Trump also said he was committed to preserving the dollar's global status as a reserve currency and pledged to never allow the creation of a central bank digital currency in America. Trump announced the new tariff on July 6, saying it would apply to any countries aligning themselves with what he called the 'Anti-American policies' of the Brics group. With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive 'America First' approach of the US president, the Brics group is presenting itself as a haven for multilateral diplomacy.
