7 days ago
US, SA mulling gas drive for auto exemptions in trade talks: Parks Tau
US President Donald Trump announced tariffs on auto imports in terms of section 232 of the US Trade Expansion Act, aimed at protecting the US industry. In April, he announced 'reciprocal' tariffs of 60% but suspended them for 90 days.
Last week, he announced 30% tariffs on South Africa but allowed time until August to negotiate a trade deal. This is despite Ramaphosa travelling to Washington in May with a delegation that included billionaire Johann Rupert and agriculture minister John Steenhuisen.
Tau said South Africa had its own set of demands for the US in the trade discussions, including provisions for auto and auto part imports to be made exempt from the section 232 tariffs announced earlier this year.
'In return, South Africa requested that the US consider the ... exemption of certain volume of cars and parts, and steel and aluminium from section 232 tariffs.
'While negotiations are under way, [SA asked] the US to maintain the reciprocal tariff at 10% or lower rate for other exports and maintain the Agoa [African Growth and Opportunity Act] preferential rate on MFN (most-favoured nation) duties.'
He said South Africa asked the US to further exempt counter-seasonal fresh produce and exports from SMEs of less than $1m (R17.9m) per annum from the reciprocal tariff and grant market access for citrus, avocados, lychees and mangoes.
