Latest news with #SimphiweHamilton
IOL News
3 days ago
- Business
- IOL News
South Africa eyes diversification as jobs exodus looms over 30% US import tariffs
Zane Dangor, the Director-General (DG) of the Department of International Relations and Cooperation (Dirco), speaking with Simphiwe Hamilton, the director-general of the Department of Trade, Industry and Competition (the dtic) during a press briefing led by Ministers Ronald Lamola and Parks Tau on the reciprocal US tariffs. Image: GCIS Banele Ginidza About 30 000 jobs in various sectors are likely to be impacted by the unilateral 30% import tariffs to be imposed by the United States on South African products, which is set to come into effect before the end of this week. This was announced on Monday as the government seeks to craft an export diversification strategy leaning heavily towards China's R20 billion market through the offered China-Africa Trade partnership and a special industrialisation memorandum of understanding exclusively with South Africa. Simphiwe Hamilton, the director-general of the Department of Trade, Industry and Competition (the dtic), confirmed that thousands of jobs were on the line in a variety of industries that export goods to the US market. 'We base this on the ongoing consultation that we have with all the sectors of the economy, from automotive to agriculture, and all the other sectors that are going to be affected, and at this stage, we are sitting at approximately 30 000 jobs that could be affected by this,' Hamilton 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. 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. Advertisement 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. 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 ✕ The dtic and the Department of International Relations and Cooperation (Dirco) said the 20% increase on top of the basic 10% tariff may shave off 0.2% of South Africa's economic growth, with the reduction in growth depending on SA's ability to find alternative markets. Trade Minister Parks Tau said it was mildly comforting that 35% of SA exports remained exempted from the tariffs with the exceptions published in the previous US Executive Order to remain in force. The exceptions cover products such as copper, pharmaceuticals, semi-conductors, lumber articles, certain critical minerals, stainless steel scrap, energy and energy products. Tau said the impact of the tariff was still subject of scrutiny with various conclusions, citing AgriCulture South Africa reporting an understated impact than initially modelled. "Drawing a straight line is a mistake we all have been making over the past few months when we are saying the auto sector is going to be affected and can't export to the US market," Tau said. "But when you drill down to the detail, most of the Original Equipment Manufacturers (OEMs) in the country do not go into the US market. So you have to go to the OEM that goes into the US market to determine what percentage of products [is exported to the US] to then determine impact. Last month, US President Donald Trump stated that the 30% tariff was "necessary to correct the many years of South Africa's Tariff, and Non Tariff, Policies and Trade Barriers," blaming Pretoria for what he called "unsustainable Trade Deficits against the United States." However, Tau and Dirco Minister Ronald Lamola said the calculation of US-SA "trade deficit" ignored the substantial US trade surplus in services, as well as the complementary nature of the bilateral trade and investment relations between the two countries. "South African exports do not compete with US producers and do not pose a threat to the US industry," they said in a joint statement. As a result, the government has embarked on the diversification of markets and strengthening trade and investment partnerships with various trade partners, targeting markets across Africa, as well as in Asia, Europe, Middle East, and Americas. "Our announcement on the Clean Trade and Investment Partnership with the European Union in March has unlocked a R90 Billion Investment Package that has been initially committed," read the statement. "This Clean Trade and Investment Partnership also aims to unlock new market access opportunities for South Africa, including the export of Sustainable Aviation Fuel (SAF) by Sasol and the exports of hybrids and Electric Vehicles. "While facing global trade challenges, South Africa is proactively building a more resilient agricultural sector. We've made significant progress in opening up vast new markets like China and Thailand, securing vital protocols for products like citrus and others." The government said that with China alone being a $200bn market, South Africa was confidently expanding its reach and creating new opportunities for agricultural producers. "We're making significant inroads into new, high-growth markets across Asia and the Middle East, including the UAE, Qatar, and Saudi Arabia. We have also developed a number of Trade and Investment Packages with a number of countries, including Japan that aim to unlock new market access opportunities," it said. "While the current measures present challenges, it also presents opportunities to build and accelerate the implementation of the African Continental Free Trade Agreement and to develop new partnerships in markets that have remained untapped, including ASEAN and Turkiye." BUSINESS REPORT
The Hill
3 days ago
- Business
- The Hill
US tariffs put 30,000 South African jobs at risk, officials say
JOHANNESBURG (AP) — U.S. reciprocal tariffs have put an estimated 30,000 jobs at risk, South African authorities said Monday, four days before a 30% U.S. tariff on most imports from South Africa kicks in. South Africa was slapped with one of the highest tariff rates by its third-largest trading partner — after China and the EU — creating uncertainty for the future of some export industries and catapulting a scramble for new markets outside the U.S. Tariffs come into effect on Aug. 8. In an update on mitigation measures, a senior government official warned that an estimated 30,000 jobs were in jeopardy if the response to the higher tariffs was 'mismanaged'. 'We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture and all the other sectors that are going to be impacted,' said Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition. South Africa is already grappling with stubbornly high unemployment rates. The official rate was 32,9% in the first quarter of 2025 according to StatsSA, the national statistical agency, while the youth unemployment rate increased from 44,6% in the fourth quarter of 2024 to 46,1% in the first quarter of 2025. In his weekly public letter on Monday, President Cyril Ramaphosa said that South Africa must adapt swiftly to the tariffs since they could have a big impact on the economy, the industries that rely heavily on exports to the U.S. and the workers they employ. 'As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US,' he said. 'Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products.' President Donald Trump has been highly critical of the country's Black-led government over a new land law he claims discriminates against white people. Negotiations with the U.S. have been complicated and unprecedented, according to South Africa's ministers, who denied rumors that the lack of an ambassador in the U.S affected the result of the talks. The Trump administration expelled Ebrahim Rasool, South Africa's ambassador to Washington, in mid-March, accusing him of being a 'race-baiting politician' who hates Trump. International Relations Minister Ronald Lamola highlighted that even countries with ambassadors in the U.S. and allies of Washington had been hard hit with tariffs. However, Lamola confirmed that the process of appointing a replacement for Rasool was 'at an advanced stage'. The U.S. accounts for 7.5% of South Africa's global exports. However, several sectors, accounting for 35% of exports to the U.S., remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap and energy products remain exempted from the tariffs. The government has been scrambling to diversify South Africa's export markets, particularly by deepening intra-African trade. Countries across Asia and the Middle East, including the United Arab Emirates, Qatar, and Saudi Arabia have been touted as opportunities for high-growth markets. The government said it had made significant progress in opening vast new markets like China and Thailand, securing vital protocols for products like citrus. The government has set up an Export Support Desk to aid manufacturers and exporters in South Africa search for alternate markets. While welcoming the establishment of the Export Support Desk, an independent association representing some of South Africa's biggest and most well-known businesses called for a trade crisis committee to be established that brings together business leaders and government officials, including from the finance ministry. Business Leadership South Africa said such a committee would ensure fast, coordinated action to open new markets, provide financial support, and maintain employment. 'U.S. tariffs pose a severe threat to South Africa's manufacturing and farming sectors, particularly in the Eastern Cape. While businesses can eventually adapt, urgent temporary support is essential,' said BLSA in a statement.
Los Angeles Times
3 days ago
- Business
- Los Angeles Times
U.S. tariffs put 30,000 South African jobs at risk, officials say
JOHANNESBURG — U.S. reciprocal tariffs have put an estimated 30,000 jobs at risk, South African authorities said Monday, four days before a 30% U.S. tariff on most imports from South Africa kicks in. South Africa was slapped with one of the highest tariff rates by its third-largest trading partner — after China and the EU — creating uncertainty for the future of some export industries and catapulting a scramble for new markets outside the U.S. Tariffs come into effect on Aug. 8. In an update on mitigation measures, a senior government official warned that an estimated 30,000 jobs were in jeopardy if the response to the higher tariffs was 'mismanaged'. 'We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture and all the other sectors that are going to be impacted,' said Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition. South Africa is already grappling with stubbornly high unemployment rates. The official rate was 32.9% in the first quarter of 2025 according to StatsSA, the national statistical agency, while the youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46,1% in the first quarter of 2025. In his weekly public letter on Monday, President Cyril Ramaphosa said that South Africa must adapt swiftly to the tariffs since they could have a big impact on the economy, the industries that rely heavily on exports to the U.S. and the workers they employ. 'As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US,' he said. 'Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products.' President Trump has been highly critical of the country's Black-led government over a new land law he claims discriminates against white people. Negotiations with the U.S. have been complicated and unprecedented, according to South Africa's ministers, who denied rumors that the lack of an ambassador in the U.S affected the result of the talks. The Trump administration expelled Ebrahim Rasool, South Africa's ambassador to Washington, in mid-March, accusing him of being a 'race-baiting politician' who hates Trump. International Relations Minister Ronald Lamola highlighted that even countries with ambassadors in the U.S. and allies of Washington had been hard hit with tariffs. However, Lamola confirmed that the process of appointing a replacement for Rasool was 'at an advanced stage'. The U.S. accounts for 7.5% of South Africa's global exports. However, several sectors, accounting for 35% of exports to the U.S., remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap and energy products remain exempted from the tariffs. The government has been scrambling to diversify South Africa's export markets, particularly by deepening intra-African trade. Countries across Asia and the Middle East, including the United Arab Emirates, Qatar, and Saudi Arabia have been touted as opportunities for high-growth markets. The government said it had made significant progress in opening vast new markets like China and Thailand, securing vital protocols for products like citrus. The government has set up an Export Support Desk to aid manufacturers and exporters in South Africa search for alternate markets. While welcoming the establishment of the Export Support Desk, an independent association representing some of South Africa's biggest and most well-known businesses called for a trade crisis committee to be established that brings together business leaders and government officials, including from the finance ministry. Business Leadership South Africa said such a committee would ensure fast, coordinated action to open new markets, provide financial support, and maintain employment. 'U.S. tariffs pose a severe threat to South Africa's manufacturing and farming sectors, particularly in the Eastern Cape. While businesses can eventually adapt, urgent temporary support is essential,' said BLSA in a statement. Gumede writes for the Associated Press.
Winnipeg Free Press
3 days ago
- Business
- Winnipeg Free Press
US tariffs put 30,000 South African jobs at risk, officials say
JOHANNESBURG (AP) — U.S. reciprocal tariffs have put an estimated 30,000 jobs at risk, South African authorities said Monday, four days before a 30% U.S. tariff on most imports from South Africa kicks in. South Africa was slapped with one of the highest tariff rates by its third-largest trading partner — after China and the EU — creating uncertainty for the future of some export industries and catapulting a scramble for new markets outside the U.S. Tariffs come into effect on Aug. 8. In an update on mitigation measures, a senior government official warned that an estimated 30,000 jobs were in jeopardy if the response to the higher tariffs was 'mismanaged'. 'We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture and all the other sectors that are going to be impacted,' said Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition. South Africa is already grappling with stubbornly high unemployment rates. The official rate was 32,9% in the first quarter of 2025 according to StatsSA, the national statistical agency, while the youth unemployment rate increased from 44,6% in the fourth quarter of 2024 to 46,1% in the first quarter of 2025. In his weekly public letter on Monday, President Cyril Ramaphosa said that South Africa must adapt swiftly to the tariffs since they could have a big impact on the economy, the industries that rely heavily on exports to the U.S. and the workers they employ. 'As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US,' he said. 'Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products.' President Donald Trump has been highly critical of the country's Black-led government over a new land law he claims discriminates against white people. Negotiations with the U.S. have been complicated and unprecedented, according to South Africa's ministers, who denied rumors that the lack of an ambassador in the U.S affected the result of the talks. The Trump administration expelled Ebrahim Rasool, South Africa's ambassador to Washington, in mid-March, accusing him of being a 'race-baiting politician' who hates Trump. International Relations Minister Ronald Lamola highlighted that even countries with ambassadors in the U.S. and allies of Washington had been hard hit with tariffs. However, Lamola confirmed that the process of appointing a replacement for Rasool was 'at an advanced stage'. The U.S. accounts for 7.5% of South Africa's global exports. However, several sectors, accounting for 35% of exports to the U.S., remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap and energy products remain exempted from the tariffs. Monday Mornings The latest local business news and a lookahead to the coming week. The government has been scrambling to diversify South Africa's export markets, particularly by deepening intra-African trade. Countries across Asia and the Middle East, including the United Arab Emirates, Qatar, and Saudi Arabia have been touted as opportunities for high-growth markets. The government said it had made significant progress in opening vast new markets like China and Thailand, securing vital protocols for products like citrus. The government has set up an Export Support Desk to aid manufacturers and exporters in South Africa search for alternate markets. While welcoming the establishment of the Export Support Desk, an independent association representing some of South Africa's biggest and most well-known businesses called for a trade crisis committee to be established that brings together business leaders and government officials, including from the finance ministry. Business Leadership South Africa said such a committee would ensure fast, coordinated action to open new markets, provide financial support, and maintain employment. 'U.S. tariffs pose a severe threat to South Africa's manufacturing and farming sectors, particularly in the Eastern Cape. While businesses can eventually adapt, urgent temporary support is essential,' said BLSA in a statement.
3 days ago
- Business
US tariffs put 30,000 South African jobs at risk, officials say
JOHANNESBURG -- U.S. reciprocal tariffs have put an estimated 30,000 jobs at risk, South African authorities said Monday, four days before a 30% U.S. tariff on most imports from South Africa kicks in. South Africa was slapped with one of the highest tariff rates by its third-largest trading partner — after China and the EU — creating uncertainty for the future of some export industries and catapulting a scramble for new markets outside the U.S. Tariffs come into effect on Aug. 8. In an update on mitigation measures, a senior government official warned that an estimated 30,000 jobs were in jeopardy if the response to the higher tariffs was 'mismanaged'. 'We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture and all the other sectors that are going to be impacted,' said Simphiwe Hamilton, director-general of the Department of Trade, Industry and Competition. South Africa is already grappling with stubbornly high unemployment rates. The official rate was 32,9% in the first quarter of 2025 according to StatsSA, the national statistical agency, while the youth unemployment rate increased from 44,6% in the fourth quarter of 2024 to 46,1% in the first quarter of 2025. In his weekly public letter on Monday, President Cyril Ramaphosa said that South Africa must adapt swiftly to the tariffs since they could have a big impact on the economy, the industries that rely heavily on exports to the U.S. and the workers they employ. 'As government, we have been engaging the United States to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US,' he said. 'Our foremost priority is protecting our export industries. We will continue to engage the US in an attempt to preserve market access for our products.' President Donald Trump has been highly critical of the country's Black-led government over a new land law he claims discriminates against white people. Negotiations with the U.S. have been complicated and unprecedented, according to South Africa's ministers, who denied rumors that the lack of an ambassador in the U.S affected the result of the talks. The Trump administration expelled Ebrahim Rasool, South Africa's ambassador to Washington, in mid-March, accusing him of being a 'race-baiting politician' who hates Trump. International Relations Minister Ronald Lamola highlighted that even countries with ambassadors in the U.S. and allies of Washington had been hard hit with tariffs. However, Lamola confirmed that the process of appointing a replacement for Rasool was 'at an advanced stage'. The U.S. accounts for 7.5% of South Africa's global exports. However, several sectors, accounting for 35% of exports to the U.S., remain exempt from the tariffs. These include copper, pharmaceuticals, semiconductors, lumber products, certain critical minerals, stainless steel scrap and energy products remain exempted from the tariffs. The government has been scrambling to diversify South Africa's export markets, particularly by deepening intra-African trade. Countries across Asia and the Middle East, including the United Arab Emirates, Qatar, and Saudi Arabia have been touted as opportunities for high-growth markets. The government said it had made significant progress in opening vast new markets like China and Thailand, securing vital protocols for products like citrus. The government has set up an Export Support Desk to aid manufacturers and exporters in South Africa search for alternate markets. While welcoming the establishment of the Export Support Desk, an independent association representing some of South Africa's biggest and most well-known businesses called for a trade crisis committee to be established that brings together business leaders and government officials, including from the finance ministry. Business Leadership South Africa said such a committee would ensure fast, coordinated action to open new markets, provide financial support, and maintain employment. 'U.S. tariffs pose a severe threat to South Africa's manufacturing and farming sectors, particularly in the Eastern Cape. While businesses can eventually adapt, urgent temporary support is essential,' said BLSA in a statement.
