Latest news with #FrameworkDeal
The Citizen
3 days ago
- Business
- The Citizen
US tariff pause ends on 9 July: Tau says what happens now
South Africa, along with other African countries, is still seeking an extension beyond 9 July to submit a new deal proposal in response to US tariffs. With the United States (US) tariff pause of 90 days coming to an end on 9 July, there seems to be nothing happening now, but Minister of Trade, Industry and Competition Parks Tau says South Africa is one of the countries that is asking for an extension because there is so little time left. US President Donald Trump instituted tariffs on goods imported into the US in April, marking the day as 'US Liberation Day'. South Africa got slapped with a 30% tariff, but Trump decided to pause the tariffs for ninety days until 9 July. President Cyril Ramaphosa paid a quite acrimonious visit to the White House for a meeting with Trump, followed by trade talks between South African ministers and their US counterparts. Tau said afterwards that the South African delegation submitted a proposal to the US regarding a framework agreement, focusing on issues related to trade and investment. The proposal identified areas for increased trade and access to each party's markets, while illustrating the benefits of keeping channels as open as possible. ALSO READ: Will Trump's tariffs have major negative effect on South Africa's economy? Talks about US tariffs in Angola last week Last week, Zuko Godlimpi, deputy minister of trade, industry and competition (DTIC), met with the US trade representative responsible for Africa, Connie Hamilton, on the sidelines of the United States of America-Africa Summit in Luanda, Angola. According to a statement from the DTIC, the meeting followed South Africa's submission of a proposed Framework Deal with the US on 20 May 2025, which outlines measures to enhance mutually beneficial trade and investment relations with the US. The submission was immediately followed by Ramaphosa's meeting with Trump on 21 May. The Framework Deal addresses US concerns relating to issues such as non-tariff barriers, the trade deficit and commercial relations through two-way procurement or importing strategic goods. It also aims to resolve long-standing market access issues of interest to both sides and promote bilateral investments in a mutually beneficial manner. According to the DTIC, South Africa is also seeking, through the Framework Deal, to have some of the key export products exempted from the Section 232 duties, including cars and car parts, as well as steel and aluminium through tariff rate quotas. ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks SA prepared to settle for maximum US tariffs of 10% South Africa is also seeking the maximum tariff application of 10% as a worst-case situation. The Framework also seeks exemption for small and medium enterprises, counter-seasonal products and products that the US cannot produce itself. The DTIC says South Africa used the meeting with Hamilton in Luanda to continue to raise its concerns about the impact of the reciprocal tariffs on African countries, especially. 'One of the key issues that emerged from the meeting is that the US is developing a trade-matters template, which will be the basis for its engagements with countries in sub-Saharan Africa. 'The template will be shared as soon as it has gone through the internal approval processes in the US administration. South Africa welcomed this indication and expressed a preparedness to engage with the template once it is finalised.' Considering this development, including the limited time between now and the deadline for the expiry of the 90-day pause, African countries, including South Africa, have advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals according to the new template. ALSO READ: South Africa faces 25% tariff on US car imports, Minister Parks Tau voices concern Tau says SA would like to resubmit deal for US tariffs 'We believe that South Africa may need to resubmit its Framework Deal in accordance with the new template, and therefore, we expect that the deadline may be shifted,' Rau says. 'We urge the South African industry to exercise strategic patience and not take decisions in haste, and that government will continue to use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market.'
IOL News
3 days ago
- Business
- IOL News
South Africa prepares for US trade framework amidst Trump's tariff uncertainties
The Minister of Trade, Industry and Competition, Parks Tau, said South Africa welcomed this indication and expressed a preparedness to engage with the said template once finalised. Image: Independent Media Archives Banele Ginidza The ongoing evolution of trade relationships between the United States and sub-Saharan Africa has entered a critical phase as the USA moves towards establishing a new trade-matters template. This template will guide its future engagements with African nations, a development revealed by Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, following discussions last week with the US Assistant Trade Representative for Africa, Connie Hamilton. On the heels of South Africa's submission for a proposed Framework Deal aimed at bolstering trade and investment relations with the US, the government has urged local businesses to brace themselves for potential changes poised to emerge from this new framework. Godlimpi's dialogue with Hamilton occurred during the recent US-Africa Summit in Luanda, Angola, where pertinent issues surrounding reciprocal tariffs were also addressed. While the proposed Framework Deal, submitted on 20 May 2025, underscores measures designed to resolve trade deficits and promote bilateral investment, its future may hinge on the forthcoming US internal approval process. The expiry of a 90-day tariff freeze, initially set for 9 July 2025, has raised concerns within the South African government about the adequacy of this timeline. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ As such, African countries are collectively advocating for a deadline extension to allow adequate preparation for aligning their proposed deals to the forthcoming US template. The Minister of Trade, Industry and Competition, Parks Tau, said South Africa welcomed this indication and expressed a preparedness to engage with the said template once finalised. 'In this regard, we are of the view that South Africa may need to re-submit its Framework Deal in accordance with the new template. It is thus expected that the deadline may be shifted,' Tau said. The government is keen to ensure that the new requirements do not unduly disadvantage local enterprises, hence the appeal for strategic patience from the South African industry. Prospectively, South Africa's Framework Deal aims to tackle a range of US concerns, including non-tariff barriers and longstanding market access issues. It seeks specific exemptions from Sections 232 duties for key export products such as automobiles, auto parts, steel, and aluminium, ensuring these critical sectors can remain competitive in the US market. South Africa is also seeking the maximum tariff application of 10%, as a worst-case situation. The Framework also seeks exemption for Small and Medium Enterprises, counter-seasonal products and products that the US does not have productive capacity for. 'We urge the South African industry to exercise strategic patience and not take decisions in haste and that the government will continue to use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market,' Tau said. As South Africa navigates these complexities, international sentiment has shifted towards urgency. The New York Times recently reported that governments around the globe were racing to negotiate trade deals with the US in order to forestall President Donald Trump's punishing tariffs. Trump announced what he referred to as 'reciprocal tariffs' on April 8, saying they were in response to other countries' unfair trading practices. However, he agreed to pause those levies for 90 days to give countries time to reach trade deals with the US. The coercive nature of previous tariffs has spurred conversations across the globe about fair trade practices, with Trump signalling readiness to impose tariffs on countries perceived as uncooperative—compounding existing anxieties surrounding the impending July deadline.
