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IOL News
7 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
11 hours ago
- Automotive
- Eyewitness News
Minister Tau says SA diversifying and looking elsewhere to mitigate US trade tariffs
CAPE TOWN – Trade, Industry and Competition Minister, Parks Tau, says South Africa is diversifying and looking elsewhere to mitigate the impact of the United States (US) trade tariffs. He said the tariffs imposed by the Donald Trump administration have already impacted the auto industry, with a 25% tariff on automobiles and parts coming into effect in April and May, respectively. In written Parliamentary replies to questions from Members of Parliament (MPs), Tau said the diversification would focus on countries that South Africa has trade agreements with, including some in South America. Tau said, while the US remains an important trading partner for South Africa, it accounted for just 7% of South African trade in 2024. He said around 40% of South Africa's trade is with Asian countries, 25% with European countries and 20% with other African nations. Tau said in February this year, the us 'imposed section 232 tariffs of 25% on steel and aluminium on the basis that imports of these products threaten US national security'. He said government is now determined to strengthen partnerships in Africa to address business challenges and create a favourable environment for conducting business. According to Tau, the diversification focuses on countries that South Africa has trade agreements in place, including the Southern African Development Community (SADC), African Continental Free Trade Area and the European Economic Partnership Agreement. The country also has a preferential trade agreement with the South American trade bloc comprising Brazil, Argentina, Paraguay and Uruguay.
IOL News
12 hours ago
- Business
- IOL News
South Africa pushes for tariff negotiations with US despite silence from Washington
The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Image: Independent Media Archives South Africa's government has reiterated its commitment to secure a favourable tariff deal with the United States, despite a conspicuous lack of communication from Washington D.C. The looming potential of a 30% levy on South African exports has sparked concern as businesses brace for what could significantly impact trade relations between the two nations. The Department of Trade, Industry and Competition (the dtic) on Tuesday said negotiations remained the best tool to deal with the issues that are on the table. The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Tau said the government remained committed to the cause as it awaited substantive feedback from the US counterparts on the final status on its Framework deal. '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,' Tau said. 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 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. '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.' Tau said South Africa's Framework deal to the US featured a number of areas including and not limited to importing 75-100 petajoules of Liquified Natural Gas for a 10 year period, which would unlock $12 billion; agricultural market access by simplifying of US poultry exports under the 2016 tariff rate quota and unlock approximately $91 million in trade. In addition, readiness to open market access for blueberries subject to necessary protocols. Tau said 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 agrimachinery. The Framework also proposes an exemption of specific sectors from reciprocal tariffs to preserve supply chains such as ship building, counter-seasonal agriculture trade, exports from Micro, Small and Medium Enterprises of less than $1m per annum. 'The way forward is clear. President [Cyril] Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial,' tau said. 'The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper.' Meanwhile, Presidential Special Envoy to North America, Mcebisi Jonas, on Tuesday said there's a pressing need for South Africa to diversify its export markets, moving beyond traditional trading partners to engage with emerging powers in Asia, the Middle East, and Latin America. Speaking at a seminar hosted by the Kgalema Motlanthe Foundation, said the African Continental Free Trade Area has shown promise, yet current crises underscored the need for more robust regional integration efforts to improve economic resilience and collaboration. 'Export diversification is a key imperative that South Africa should take up as part insurance against market concentration, but also as a source of resilience. For South Africa and Africa as a whole, the economic implications of China's growth and consequent reconfiguration of the global economy are somewhat contradictory. China has become a large investor in African development,' Jonas said. 'The USA remains a central player in global development. South Africa's relationship with the US is crucial. And it is not transactional. But based on a long partnership rooted in shared values of democracy, justice, and progress. In the immediate term, South Africa is engaged in negotiations with the US to reach a solution on the tariff impasse. But beyond that, I think there is a conversation going on improving the relations between the two countries.' BUSINESS REPORT
Daily Maverick
20 hours 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
IOL News
21 hours ago
- Business
- IOL News
South Africa's trade minister highlights 'impasse' in negotiations with the US over tariffs
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. South Africa reaffirmed its commitment to finalising a trade deal with the United States, despite ongoing geopolitical, domestic, and trade challenges. In a statement released on Tuesday, Department of Trade, Industry and Competition (DTIC), Minister Parks Tau stressed that a "reset is unavoidable" in the trade relationship between the two nations. In the statement, the government stated its decision. "South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States. We also want to reiterate that we have no intention of decoupling from the United States either." Additionally, the South African government said it views negotiations as the most effective tool to address the issues.
