Latest news with #DTIC
IOL News
2 hours ago
- Business
- IOL News
South Africa braces for hefty 30% export tariff from the US
South Africa will be hit with a 30% tariff on all its exports to the United States from August 1, following a formal letter from US President Donald Trump to President Cyril Ramaphosa demanding action on trade imbalances and long-standing market restrictions. Image: Lee Rondganger/IOL South Africans are bracing themselves for the ramifications of the hefty 30% export tariff to the US that is expected to come into effect on Friday. South Africa exports billions of rands' worth of goods to the US each year, including fruit, vegetables, meat, and wine. These sectors employ thousands of workers, and the 30% tariff will render their products uncompetitive in the American market, placing immense pressure on producers and exporters. South Africa has been trying to negotiate a trade deal with the US since May but is yet to agree on terms. The US tariffs are a stress test for South Africa's economic resiliency. Image: Doctor Ngcobo / Independent Newspapers The Department of Trade, Industry and Competition (DTIC) said it remains committed to the cause and awaits substantive feedback from the US on the final status of the country's framework deal. The department said it has been in a period of intense negotiations with the US and had signed a condition precedent document and 'have readied our inputs for entry into the template which is to follow from the US'. 'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios,' DTIC said. According to estimates, the tariffs will add roughly $3.5 billion (R63bn) to the cost of exports to the US, based on South Africa's 2023 export value. The DTIC's proposed deal features a number of areas, including importing 750-100 petajoules of Liquified Natural Gas for a 10 year period, unlocking $12 billion; and enabling agricultural market access by simplifying US poultry exports under the 2016 tariff rate quota and unlocking approximately $91m million in trade. South African firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery. Thys van Zyl, CEO of Everest Wealth Advisory, said South Africa was facing severe economic consequences without any formal agreement in place with its second-largest bilateral trading partner. 'It is almost unthinkable that, on the eve of such far-reaching tariffs, we still do not have a formal agreement – or even a timeline for when one can be expected. This is not only deeply concerning – it is negligent,' Van Zyl said. Despite discussions between the relevant stakeholders, there are no confirmed exemptions, no concessions, and no sign of progress in negotiations with the US government. The government has denied claims of a trade imbalance between South Africa and the US, maintaining that the 30% reciprocal tariff was not an accurate representation of available trade data. Minister of Trade, Industry and Competition, Parks Tau, this week said they were working with other government departments on a response plan that also focuses on demand side interventions in the impacted industries. Meanwhile, Foord Asset Management portfolio manager Farzana Bayat said a 30% tariff wall on South African exports to the US would be catastrophic and escalate trade risk. 'That would be a seismic shock. Even traditional US allies like the EU and Japan have negotiated reduced 15% tariffs - South Africa may not be so lucky,' Bayat said. She said the stakes were high as the expiry of the African Growth and Opportunity Act in 2025 was already clouding the medium-term trade outlook. Bayat said the immediate risk was acute as the South African Reserve Bank Governor Lesetja Kganyago recently warned that up to 100 000 jobs were at risk, and the automotive and citrus industries were especially exposed. Car exports to the US have already collapsed by more than 80% due to earlier tariff pressures. 'This economic stress comes at a time when South Africa is already contending with low growth, power insecurity, and shaky investor confidence,' Bayat said. 'Losing preferential access to the US - our third-largest trading partner - could be devastating.' Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
Daily Maverick
6 hours ago
- Business
- Daily Maverick
Trump tariffs – D-day for South Africa and its economic relations with the US
With the 1 August deadline upon us and no trade agreement yet, experts agree that relations between South Africa and the US would need a reset and cool heads to negotiate. With hours to go before US President Donald Trump's tariffs are expected to come into effect, South Africa announced 'urgent interventions' to support exporters impacted by the tariffs. 'The Department of Trade, Industry and Competition (DTIC) has announced a set of measures in response to the imminent 30% tariff hike on South African exports to the United States, which comes into effect on 1 August 2025. 'These urgent interventions are part of the DTIC's ongoing commitment to protecting jobs, preserving market access to the United States, and promoting export diversification to alternate markets in Africa, the European Union, Asia, Latin America, and other strategic partners,' Trade and Industry Minister Parks Tau said in a statement on Thursday night, 31 July. This comes hours after Tau told Radio 702 that South Africa was preparing a last-minute 'enhanced' trade proposal in the hope of avoiding Trump's punishing tariffs. Key among the interventions, Tau said, was the establishment of an export support desk, which would serve as a direct point of contact for companies affected by the US tariff hike. 'The desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African Embassies and High Commissions abroad,' said Tau. 'This tariff hike poses a direct threat to our export capacity, particularly in strategic sectors such as automotive, agro-processing, steel and chemicals, amongst others. 'We are working with urgency and resolve to implement real, practical interventions that defend jobs and position South Africa competitively in a shifting global landscape. The stakes are high and we must respond decisively to ensure our export industries remain resilient, competitive and globally integrated into diversified markets,' he said. Tau said exporters were encouraged to visit the DTIC website for updates and also to engage directly with the export support desk. At a White House press briefing on Thursday, press secretary Karoline Leavitt reiterated that on 1 August, the reciprocal tariff rates 'will be going into effect'. She said that foreign leaders of countries that did not have deals would be 'hearing from this administration by the midnight deadline tonight'. Leavitt said that Trump would be 'signing an executive order at some point this afternoon or later this evening' imposing new tariff rates. However, she did not rule out the possibility of the Trump administration making deals with countries that still did not have agreements in place, before midnight on Thursday. 'I will never count out the president… I do know foreign leaders are ringing his phone realising this deadline is a real thing for them tomorrow and they are bringing offers to the table,' she said. South Africa is confronting the most critical moment in its fraught relations with the US, staring at exports worth almost $10-billion being exposed to stiff tariffs that risk making these goods uncompetitive. That is the estimated value of South African exports vulnerable to the 30% 'reciprocal' and sectoral import tariffs threatened by the Trump administration. South Africa has been advised to diversify its export destinations urgently – especially to Africa – to reduce its dependency on the US. Nevertheless, the world's largest economy remains critical for now and South African officials have been working frantically to secure an alternative trade deal with the US to avert President Donald Trump's 1 August deadline for imposing hefty tariffs on most countries. However, said Eckart Naumann, independent economist and associate of the Trade Law Centre (Tralac), 'many dozens of countries are also knocking on the door and US trade officials will likely be run off their feet'. Tralac is a non-profit organisation that builds trade-related capacity in Africa. On Thursday, 31 July, Minister of Trade, Industry and Competition Parks Tau told radio station 702: 'We actually spoke to the US last night, both at the level of the embassy and also at the level of the US trade representative. They indicated that even they are unable to confirm what the announcement [on South Africa's tariff rates] would be, and that they would encourage us to resubmit our proposal, possibly an enhanced proposal, to the US government. It would be processed by the White House… At this point, they are unable to say what the final decision would be.' 'Reckless statements' In his statement, Tau said the DA, 'instead of providing constructive support to the efforts made by government', continued to release 'reckless statements which undermine the progress' the department has been making towards the 1 August deadline. 'In a trying moment for South Africa, there still remain those who would seek to sabotage our efforts to resolve this impasse. Despite our tireless efforts, which we have, where possible, communicated consistently on, some segments of our country refuse to be part of the solution. 'Instead of providing constructive support to the efforts made by government, the Democratic Alliance continues to release reckless statements which undermine the progress we have been making towards the 1 August deadline. This is downright irresponsible for a party in the Government of National Unity, and an integral part of the process,' said Tau. Earlier on Thursday, Business Day reported that South Africa was offering the automotive and agricultural sectors alternative markets and possible Treasury-backed tax incentives, part of a two-part contingency plan to keep production lines going if SA was faced with a 30% tariff from Friday. In response, DA spokesperson on finance Mark Burke said this 'new deflection' by Tau is meant 'to make up for his and his party's failed foreign policy pageantry'. 'Instead of securing a trade deal, Tau now expects our Treasury to borrow or tax South Africans more to pay for the costs of the ANC's association of our state with rogue nations like Iran,' said Burke. The chances of South Africa averting or extending the deadline seemed to dim this week when Trump told reporters that he would probably not be attending the G20 Summit in Johannesburg in November 'because I've had a lot of problems with South Africa. They have some very bad policies.' He also posted on his social media site Truth Social: 'The August 1 deadline is the August first deadline – it stands strong and will not be extended. A big day for America!' South Africa has offered a package of concessions, including lowering tariff barriers to US food imports, buying US gas and committing local companies to investing in US mining and recycling. But many analysts fear it will not be enough because it's not so much about economics as it is about politics. Zane Dangor, director-general of the Department of International Relations and Co-operation, told the Kgalema Motlanthe Foundation's winter seminar this week that there was a risk of SA being punished for its domestic policies – particularly black economic empowerment (BEE) – no matter what economic deal it put on the table. Reserve Bank governor Lesetja Kganyago said earlier this month that Trump's tariffs could cause about 100,000 job losses, with the agriculture and automotive sectors hardest hit. Naumann said the US imported goods worth $14.6-billion from South Africa in 2024, according to its own data. However, he noted that about 36% of these exports were exempt from the new tariffs because they were natural resources (mainly platinum group metals, rhodium and gold) that the US needed. This would leave South African exports to the US worth $9.344-billion vulnerable to the potential new tariff rates. Naumann said South Africa's exposure to the US as an export market was relatively limited, with about 7.5% of its total exports going to the US. 'However, in some sectors, South Africa's exposure to the US is quite high,' he said. 'For example, last year, 29% of our boat exports went to the US duty-free under Agoa [the African Growth and Opportunity Act]; 25% of aluminium and articles thereof were exported to the US and are now subject to 50% tariffs; 11% of our auto exports were shipped duty-free to the US and, along with much of the rest of the world, now face a 25% sectoral tariff. 'In contrast, key competitors like the EU, UK and Japan, and indeed Mexico under the US-Mexico-Canada Agreement, have negotiated far more preferential access to the US for their motor vehicle exports.' Naumann noted that the tariffs SA faced were differentiated: there were the 30% 'reciprocal' tariffs, but also sectoral tariffs of 25% on autos and parts; 50% sectoral tariffs on steel and aluminium; an existing 10% general tariff (to be replaced by the reciprocal tariff) and a threatened extra 10% tariff on all BRICS member countries. 'The days of preferential access to the US market are definitely over,' Naumann added. For now, under Agoa, the US was still waiving standard 'most favoured nation' duties – though not the additional ones the Trump administation has added. He thought it doubtful that South Africa – perhaps any country – would remain in Agoa in its current guise after its scheduled expiry on 30 September. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the US, and a reset is unavoidable,' Tau said in a statement this week. He said SA had decided not to retaliate in terms of the tariffs and awaited the US's response to its proposed framework deal. The deal included South Africa importing 75-100 petajoules of US liquified natural gas for a 10-year period, unlocking $12-billion; giving the US more agricultural market access by simplifying US poultry imports, unlocking about $91-million in trade; being ready to open the South African market for US blueberries; local firms committing to invest $3.3-billion in US industries such as mining and metals recycling; and both governments agreeing to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery. Tralac CEO Trudi Hartzenberg, however, thought pork and poultry seemed a 'tricky' part of the negotiations. Donald MacKay, director of XA Global Trade Advisors, said although the state of the SA-US trade negotiations was very murky, in part because both sides had signed a non-disclosure agreement, he suspected that South Africa would, in fact, be hit with the threatened big 30% tariffs. But he was hoping that the US would give South Africa another reprieve – an extension of the deadline to complete negotiations for a new deal. 'The hardest-hit centres by my estimation are going to be fresh fruit, particularly citrus and table grapes.' But MacKay said probably about half of these products had already been exported this season. 'So, still bad, but … it really means next year's going to be a particularly big problem'. MacKay added: 'The government keeps telling people to find other markets, as if that is really easy to do. For a product like citrus, we already export to over 100 countries. There's just not that many left we can send [citrus] to and certainly none left that will get us the same kind of prices we get in the US. 'Cars, of course, are not included in the 30% tariff, but they've already got their own 25% tariff. We've seen how that looks with Mercedes-Benz at least temporarily closing down its factory,' he added, referring to the company shutting down its manufacturing plant in East London for July, though it was reopened this week. MacKay said South Africa needed 'to get back to basics. We need to get a properly functioning, professional ambassador into the US. I can't even remember the last time we had a properly functioning ambassador.' Tau has been criticised in some quarters for the way he has handled the trade negotiations, but MacKay said because the negotiations had been held behind closed doors, it was impossible to judge. But, he said, he would like the government 'to put some time in with the sectors and the companies most negatively impacted to look at what can be done'. Daniel Bradlow, an economic diplomacy expert at the University of Pretoria and the South African Institute of International Affairs, said: 'The lesson from all of this, not just from South Africa, but from what's happening everywhere, is countries have to learn how to restructure their trade relations to work around the US.' For South Africa and for Africa generally, this meant there was a need to accelerate the implementation of the African Continental Free Trade Agreement (AfCFTA) and other African regional trade arrangements. The institutions that needed to be developed more intensely included regional multilateral financial institutions in Africa such as the Trade and Development Bank and the African Export-Import Bank, which focuses specifically on developing trade for Africa, and several others, Bradlow said. 'And I think South Africa should be looking at: how do we make those more robust and more effective?' Other critical issues to address – which were being tackled in South Africa's G20 – were making Africa's debt more sustainable and how to increase development finance, because that would help to finance the regional infrastructure that is needed to implement the AfCFTA. Bradlow said whatever the outcome of the SA-US trade negotiations – even if the US accepted the Department of Trade, Industry and Competition's package, South Africa would be hit as the US was a big trading partner. It was just a question of how much. He noted that, for starters, a 10% increase was a given as no country had escaped that so far, except on critical minerals, though some countries had managed to lower their reciprocal and sectoral tariff rates. On the auto industry, he said one of the big questions was how the foreign auto producers would react to a tariff increase: 'Would they start shutting down factories?' Like the government, Bradlow also said South Africa and other countries needed to shift trade relations away from the US because, even if a Democrat were to oust Trump in 2028, Democrats might not change the tariffs much – as former president Joe Biden had not changed much of Trump's tariffs in his first term. Naumann noted that the US was South Africa's second-largest export destination by country (7.5% of total exports) and China its first with 11%. Both were overshadowed by the EU, which gets 17% of South African exports and the Southern African Development Community free-trade area. 'But our exports to the US are far more diversified than our exports to China, which are mostly raw materials or resources. That makes the US probably the most important destination as a country, albeit shadowed by the EU as a whole.' A major report on SA-US trade relations just published by Tralac shows the impact of increased US tariffs on South African companies and industries would depend on several factors, including tariff advantage or disadvantage relative to competitors; the seasonality of demand and supply (how responsive demand is to the landed costs of products); and US domestic policies such as local tax breaks on locally produced autos. MP Toby Chance, the DA's spokesperson on trade, industry and competition, said Tau had been slow in realising the danger from Trump's tariffs and in taking action 'both to woo him and explore alternative markets'. He said South Africa had erred in not tackling Trump's 'instinctive negativity' towards the country with better diplomacy, citing the appointment of Ebrahim Rasool as ambassador and Mcebisi Jonas as special envoy to the US. 'I think it is highly likely we will end up on the higher end of the 10% to 30% tariff spectrum, though there could be some sweeteners such as concessions on counter-seasonal fruit, which would help our citrus growers. 'Another glaring omission is the government's ignoring the issue of non-tariff barriers, continually raised by the Trump administration as factors in the negotiations, which are a bar to investment not just by the US but other countries and firms, e.g. BEE, the Employment Equity Act, expropriation without compensation, etc.' Naumann said it was probably unfair to criticise SA's negotiators for the perceived lack of progress. 'We're not first in line for a reasonable deal and apart from years-long neglect and being virtually absent in Washington – and still without an ambassador or interlocutor – politically we're certainly not well favoured by Washington. We shouldn't maintain high hopes of a particularly favourable outcome involving exemptions and a low country tariff rate, as this just doesn't appear to fit the current political narrative.' He thought new tariffs for South Africa would be postponed for further negotiations, but added: 'The US will be careful not to make concessions to South Africa that might undermine dozens of other trade deals being pursued right now.' DM
IOL News
15 hours ago
- Business
- IOL News
South Africa's strategies to combat US 30 percent import tariff
The government says it has put various alternative mechanisms in place to avert the proposed US 30% tariff on South African exports. Image: Lee Rondganger/IOL The South African government says it has put various alternative mechanisms in place to avert the proposed US 30% import tariff wall on South African exporters ahead of the August 1 deadline. South Africa is among several countries facing punitive tariffs from the US as it moves to protect its own manufacturer and labour force. US President Donald Trump announced the tariffs in April, but delayed them for 90 days to allow countries to negotiate better deals. South Africa has been trying to negotiate a trade deal with the US since May but is yet to agree on terms. On Tuesday, the Department of Trade, Industry and Competition (DTIC) said it remains committed to the cause and awaits substantive feedback from the US on the final status of the country's framework deal. Video Player is loading. 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Next Stay Close ✕ The department said it has been in a period of intense negotiations with the US and had signed a condition precedent document and 'have readied our inputs for entry into the template which is to follow from the US'. 'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios,' DTIC said. However, the DA said this was deeply concerning and raised far more questions than answers, adding that the offer on the table would not satisfy a US administration that is driving a hard bargain. Asked what measures have been put in place to avoid the worst scenario, the DTIC spokesperson Kaamil Alli said the department has also been working actively with industry associations and export councils to explore alternative markets for 'our' goods. Alli added that the department was also working with the National Treasury and other departments on a support package for affected industries. While Allie did not reveal further details regarding this, it has been reported that the government has offered the motor vehicle and agricultural sectors alternative markets and possible Treasury-backed tax incentives, which is a two-pronged contingency plan to keep production lines humming should the US impose a 30% tariff on the country's exports. According to the DA, this is meant to make up for DTIC Minister Parks Tau and the ANC's failed foreign policy. 'Instead of securing a trade deal, Tau now expects our Treasury to borrow or tax South Africans more to pay for the costs of the ANC's association of our state with rogue nations like Iran. The National Treasury and by implication South Africans cannot be the funder of last resort if Tau fails to reach a US deal by midnight,' said Mark Burke, the party's spokesperson on Finance. On Wednesday, Minister of Mineral and Petroleum Resources, Gwede Mantashe, told journalists that the country must look for alternative markets should the US impose high tariffs, particularly in relation to critical minerals. Mantashe added that while diplomatic engagements with the US continues, the country must also diversify its trading partners. 'The diplomatic discipline will engage the US, but it doesn't stop us from diversifying our markets. If the US imposes high tariffs, we must look for alternative markets. Our biggest trading partner is China, it's not the US. ''The US is number two. It means that if they impose heavy tariffs on us, we must look more for alternative markets in the world. They are there. They are available. We must exploit them,'' Mantashe said. The DTIC's proposed deal features a number of areas, including importing 750-100 petajoules of Liquified Natural Gas for a 10 year period, unlocking $12 billion. Enabling agricultural market access by simplifying US poultry exports under the 2016 tariff rate quota and unlocking approximately $91m million in trade. South African firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals and agri-machinery. Alli added that while many issues have been addressed, the challenges however, are around agricultural imports which need to meet health and sanitary standards.
The Citizen
19 hours ago
- Business
- The Citizen
Hopes pinned on last-minute trade deal with the United States
South Africa faces a decisive moment today as the threat of debilitating 30% United States (US) import tariffs looms large, with hopes pinned on a last-minute trade agreement that could shield key industries, prevent economic disruption and safeguard thousands of jobs across the country. The Witness reports that among more than 100 economies targeted in a sweeping global tariff clampdown by US President Donald Trump's administration, South Africa has submitted a detailed framework proposal to Washington aimed at averting the tariffs, which are set to take effect from tomorrow. Trade, Industry and Competition (DTIC) Minister Parks Tau, who is part of the interministerial team leading negotiations with the US government, said the proposal is built around a clear commitment to prioritising national interests. 'The DTIC has made this issue an apex priority… and we have centred South Africa and her people as our non-negotiable. 'Rest assured, we will not waver in our mission to ensure we make South Africa proud. 'We remain committed to the cause as we await substantive feedback from our U.S. counterparts on the final status of our framework deal,' he said. Despite Trump stating yesterday on his social media platform that there would be no extension to the 'August first deadline', Tau said the government was confident in the strength of its submission and believed it offered a sound, mutually beneficial business proposition. The proposal presented by South Africa includes a range of trade and investment commitments designed to enhance bilateral economic ties, namely: Importing between 75 and 100 petajoules of liquefied natural gas from the US over a 10-year period, unlocking $12b in trade opportunities. Streamlining poultry imports under the 2016 tariff rate quota, with the potential to unlock about $91m in trade. South Africa has also indicated readiness to expand market access for US blueberries, pending finalisation of relevant protocols. Committing R61b ($3.3b) in investment by South African firms into US sectors such as mining and metals recycling, alongside new collaborative initiatives in pharmaceuticals, agricultural machinery and critical minerals. Requesting the exemption of key sectors from reciprocal tariffs to preserve global supply chains, including shipbuilding, counter-seasonal agriculture, and small-scale exports from enterprises with turnover under $1m. If the tariffs are imposed, they are expected to hit two of South Africa's largest export sectors the hardest: automotive manufacturing and agriculture. The automotive industry, which directly and indirectly employs more than 500 000 South Africans, exported vehicles worth R35b to the US last year. Industry leaders have warned that a 30% tariff could trigger job losses and ripple effects across the broader manufacturing value chain. The agricultural sector, which exports approximately R150b in goods to the US annually, also stands to suffer significant damage, with farmers, producers, and exporters all vulnerable to higher trade barriers. While remaining hopeful of a breakthrough, Tau confirmed that contingency measures were already in motion. 'We have planned for these scenarios and have not sat idle. We are working with other government departments on a response plan which includes a support desk within the DTIC. 'Our response package also focuses on demand-side interventions in the impacted industries,' he said. International relations expert Siyabonga Ntombela acknowledged the seriousness of the situation but maintained that a negotiated outcome remained possible. 'If not by Friday, I am sure we will eventually get a lower rate as the country will probably push for negotiations to continue past the deadline,' Ntombela said. He added: 'The US has many companies based here and we have an interest in the US market, so it's of mutual interest that a deal is agreed upon. In international relations and politics, nations don't have permanent enemies, but they always have permanent interests.' Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on
Daily Maverick
2 days ago
- Business
- Daily Maverick
US-SA trade deal still in limbo as tariff deadline looms
The Trade and Industry Ministry says it is still awaiting 'substantive feedback' from the US on its trade proposal as the 1 August deadline looms. South Africa and the US have still not reached a trade deal, days before US President Donald Trump's 30% tariff on South African goods is due to take effect. In a statement on Tuesday, 29 July, the Department of Trade, Industry and Competition (DTIC) said it remained committed to the conclusion of a trade agreement with the US, as it waits for feedback from the Trump administration on its trade proposal. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable,' read the statement. 'Our view is that negotiations remain the best tool to deal with the issues that are on the table… We remain committed to the cause as we await substantive feedback from our US counterparts on the final status [of] our framework deal,' it continued. Earlier this month, Trump announced that he would impose a 30% tariff on South African exports to the US from 1 August. Multiple other countries are also facing varying tariff rates. While some countries, including the UK, Japan and Vietnam, have bagged trade agreements with the US, not a single African nation has reached a deal with America. 'Prepared for several potential scenarios' After Trump announced his global ' reciprocal ' tariffs in April, before agreeing to suspend their application for 90 days, Pretoria was eager to begin negotiations with America over tariffs. It proffered a proposed framework deal to US trade representatives in Washington in May, before President Cyril Ramaphosa and Trump met at the White House. Pretoria was later told it needed to revise this proposal, in accordance with the Trump administration's new template for US trade with sub-Saharan Africa, which it was told would be shared ' soon '. However, it appeared that as of Tuesday, Pretoria was still waiting for this template. 'As the Department of Trade, Industry and Competition, we have been in a period of intense negotiations with the United States. We have signed a condition precedent document and have readied our inputs for entry into the template, which is to follow from the US,' it said. Department of International Relations and Cooperation (Dirco) director-general Zane Dangor said on Tuesday, there were no guarantees of a trade deal with the US by 1 August, with issues such as black economic empowerment (BEE) obscuring matters, according to a News24 report. If implemented, Trump's punishing tariffs will kneecap South African industries, including the automotive sector and the citrus industry. But the DTIC suggested it was preparing for other eventualities should a deal not be signed. 'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios. 'We have planned for these scenarios and have not sat idle. We are working with other government departments on a response plan, which includes a support desk within the DTIC. Our response package also focuses on demand side interventions in the impacted industries,' it said. The DTIC said it had no intention of 'decoupling' from the US. Details of the trade proposal Pretoria's initial trade proposal included deals on agriculture, critical minerals, automotives and other exports. According to the DTIC, some of the elements of the framework deal include: Importing 75-100 petajoules of liquefied natural gas from the US for a 10-year period, unlocking $12-billion. The simplification of US poultry exports under the 2016 tariff rate quota, which is expected to unlock about $91-million in trade. In addition, readiness to open market access for blueberries, subject to the necessary protocols. A commitment from South African firms to invest $3.3-billion in US industries such as mining and metals recycling, with an agreement from both governments to pursue joint investment in critical minerals, pharmaceuticals and agricultural machinery. The exemption of specific sectors from reciprocal tariffs to preserve supply chains. For example, ship-building, counter-seasonal agricultural trade, and exports from MSMEs [micro, small and medium enterprises] of less than $1-million per year. DM
