Latest news with #U.S.AfricanGrowthandOpportunityAct
Yahoo
01-04-2025
- Automotive
- Yahoo
South Africa seeks meeting with US on auto tariffs
JOHANNESBURG (Reuters) - South Africa will seek a meeting with U.S. authorities on auto tariffs, Trade Minister Parks Tau said on Tuesday, noting the levies are a concern as the country has preferential trade status with the United States. South Africa, whose exports of vehicles and parts into the United States is estimated at over $2 billion, could take a severe hit from a planned tariff of 25% on automobile imports unveiled last week by U.S. President Donald Trump. Tau said in a statement that the U.S. Section 232 tariffs are expected to apply to imports of cars and car parts from countries, including South Africa, that benefit from the U.S. African Growth and Opportunity Act (AGOA). AGOA provides duty-free access to the U.S. market for most agricultural and manufactured products, such as cars and parts exported by eligible African countries. "Automobile exports from South Africa accounted for 64% of South Africa's exports under AGOA in 2024, and are therefore a significant component of products currently benefiting under the preferential programme," Tau said. While South Africa's car exports to the United States go duty-free under AGOA, U.S. imports into South Africa also enjoy rebates under the country's Automotive Production Development Programme. South Africa's exports of automobiles accounts for only 0.99% of U.S. total vehicle imports and 0.27% of auto parts "and thus do not constitute a threat to U.S. industry", Tau added. "South Africa will seek a meeting with the United States authorities to discuss these developments, given the potential negative effect on the South African economy," Tau said. The representative body of South Africa's automotive industry, NAAMSA has said that it was actively assessing the potential impact of these tariffs and that it was engaging with its members and other key stakeholders. Among the car brands that South Africa exports to the U.S. are Mercedes-Benz and BMW.
Reuters
01-04-2025
- Business
- Reuters
South African manufacturing conditions still depressed, Absa PMI shows
JOHANNESBURG, April 1 (Reuters) - A South African purchasing managers' index (PMI) survey showed that conditions in the manufacturing sector remained depressed in March, but there was a slight improvement in sentiment thanks to better demand. The seasonally-adjusted PMI sponsored by South African bank Absa rose to 48.7 points in March from 44.7 in February, but it remained below the 50-point mark that separates expansion from contraction. "While the headline PMI remained in contractionary territory for a fifth consecutive month, this is the highest reading since the 52.6 points recorded in October," Absa said in a statement. There was an improvement in the business activity sub-index as export sales helped demand recover. But Absa said scheduled power cuts and strained South Africa-U.S. relations were likely putting a dampener on the mood. President Donald Trump has cut U.S. financial assistance to South Africa, citing disapproval of the country's approach to land reform and its genocide case against Washington's close ally Israel at the World Court. Businesses also fear South Africa's preferential trade status under the U.S. African Growth and Opportunity Act could be under threat with Trump in the White House.
Reuters
18-03-2025
- Business
- Reuters
South African rand gains as gold scales new peak
JOHANNESBURG, March 18 (Reuters) - The South African rand strengthened on Tuesday, helped by the gold price extending its historic run to a new all-time peak. At 0814 GMT, the rand traded at 18.0175 against the dollar , about 0.4% stronger than its previous close. here. Gold hit a record high of $3,018.66, continuing its rally as investors seek cover from trade tensions sparked by U.S. President Donald Trump's tariff war. South Africa is a major producer of precious metals, and analysts say a record gold price could encourage local miners to boost output. "At some point a gold price that continues to rise will excite local miners to make a greater effort to mine difficult-to-reach gold deposits. What may not have looked viable several years ago must be looking interesting now," said ETM Analytics in a research note. The rand has proved resilient despite an uncertain domestic and global backdrop. The national budget is deadlocked for the first time in the post-apartheid era because of disagreements in the ruling coalition. Relations with the United States have rapidly soured since Trump's return to the White House in January, with the U.S. leader cutting aid to South Africa and analysts saying the African country's preferential trade status under the U.S. African Growth and Opportunity Act (AGOA) could come under threat. In terms of domestic data, the focus this week is on Wednesday's inflation figures (ZACPIY=ECI), opens new tab and Thursday's monetary policy announcement (ZAREPO=ECI), opens new tab. Economists polled by Reuters think the South African Reserve Bank could pause its rate-cutting cycle given abundant risks. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab last traded up about 1%. The benchmark 2030 government bond was flat, with the yield at 9.17%.
Reuters
17-03-2025
- Business
- Reuters
South African rand gains even as ties with US plumb new lows
JOHANNESBURG, March 17 (Reuters) - The rand firmed on Monday against a weaker dollar, as market participants appeared to shrug off the United States' decision late last week to expel South Africa's ambassador in yet another sign of the two countries' rapidly souring relations. At 1501 GMT, the rand traded at 18.11 against the dollar , about 0.4% stronger than its previous close. The dollar last traded about 0.3% weaker against a basket of currencies as markets await the Federal Reserve's interest rate decision on Wednesday amid uncertainty over President Donald Trump's tariff policies and muted economic data. U.S.-South Africa ties have deteriorated since Trump's return to the White House in January. U.S. Secretary of State Marco Rubio announced Ambassador Ebrahim Rasool's expulsion in a post on X on Friday, citing an article in which Rasool was quoted as saying that Trump was leading a white supremacist movement. South Africa called Rasool's expulsion regrettable and said it was committed to building mutually beneficial relations. Analysts, however, said interactions with the Trump administration were already tense before the latest spat and expressed confidence the sides would mend ties due to the strategic value of their trade. South Africa supplies many critical minerals to the U.S. while it benefits from preferential access to U.S. markets under the U.S. African Growth and Opportunity Act. "The U.S. still relies on SA's key minerals (chrome, platinum, manganese, vanadium), which means a total breakdown is unlikely," said Andre Cilliers, currency strategist at TreasuryONE. "Instead, the Trump administration is expected to favour bilateral negotiations for new trade terms." Later this week, investors' focus will shift to local inflation data (ZACPIY=ECI), opens new tab due to be released on Wednesday and an interest rate decision (ZAREPO=ECI), opens new tab on Thursday. Negotiations between political parties over this year's deadlocked budget could also move markets. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab closed about 0.7% higher. The benchmark 2030 government bond was marginally stronger, with the yield down 0.5 basis points at 9.16%.
Yahoo
27-02-2025
- Business
- Yahoo
South African leader wants to do a deal with Trump to resolve dispute
By Nqobile Dludla JOHANNESBURG (Reuters) - South African President Cyril Ramaphosa said on Thursday that he wanted to "do a deal" with U.S. President Donald Trump to resolve a dispute over his country's land policy and genocide case against Israel at the World Court. Trump cut U.S. financial assistance to South Africa in an executive order this month, citing disapproval of its approach to land reform and the International Court of Justice (ICJ) case against Washington's close ally. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Ramaphosa told a conference organised by U.S. bank Goldman Sachs in Johannesburg that he wanted the "dust to settle" after the executive order but that the longer-term goal was to go to Washington to mend relations. "We don't want to go and explain ourselves. We want to go and do a meaningful deal with the United States on a whole range of issues," Ramaphosa said. "I'm very positively inclined to promoting a good relationship with President Trump." Ramaphosa did not say what the deal could involve, only that it could touch on trade, diplomatic and political matters. South Africa is not hugely dependent on U.S. aid, but some fear its preferential trade status under the U.S. African Growth and Opportunity Act (AGOA) could be under threat with Trump in the White House. The country tries to project itself as non-aligned in geopolitical conflicts, not tying its interests too closely to those of rival powers the United States, China and Russia. But Trump has cited the ICJ case as an example of South Africa taking positions against Washington and its allies. (Additional reporting by Sfundo Parakozov and Bhargav Acharya; Writing by Alexander Winning; Editing by Sharon Singleton)
