According to a statement, while South Africa remains committed to a mutually beneficial trade relationship with the US, the imposition of unilateral and punitive tariffs is a major concern that creates trade barriers and undermines shared prosperity.
There is an urgent need to negotiate a new bilateral and mutually beneficial trade agreement with the US to ensure long-term trade certainty.
Trump has implemented a 30 percent tariff rate on South Africa, which exports a variety of products to the United States, its second-largest export destination.
South African economist Xhanti Payi highlights the expansive trade relationship between the two countries. It includes hard commodities such as steel, and soft commodities like agricultural products such as citrus and grapes.
Payi adds that South Africa also exports other products worth over $2 billion to the US, including vehicles and parts. These sectors are crucial to South Africa’s economy and will be affected by the tariffs.
Payi believes smaller countries will be most affected by Trump’s tariffs because they have less diversified economies. South Africa’s exports are diversified across various countries.
The South African rand weakened to a three-month low on Wednesday due to the tariff hike and concerns that the pro-business Democratic Alliance could withdraw from the country’s coalition government due to budget disagreements.
