Trump presses ahead with 30% tariff on South Africa
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Trump Slaps 30% Tariff on South African Exports Amid Rising Tensions
The United States has announced a sweeping 30% tariff on South African exports, a decision that will take effect on 7 August, further straining diplomatic and economic ties between the two nations. President Donald Trump made the announcement earlier this week, targeting South Africa alone in sub-Saharan Africa with the highest tariff rate.
Other countries, including Lesotho and Zimbabwe, will also face tariffs of 15%, but South Africa’s heavier penalty reflects Washington’s deteriorating relationship with President Cyril Ramaphosa’s administration.
The move poses a significant economic threat. The US is South Africa’s second-largest trading partner, and the new tariffs jeopardise key sectors like automobile manufacturing, agriculture, and textiles, which had previously benefited from duty-free access under the African Growth and Opportunity Act (Agoa).
Trade Deal Talks Fail to Prevent Tariffs
In the lead-up to the 1 August decision, South Africa made several attempts to avert the punitive tariffs. Negotiations reportedly included proposals to purchase US liquefied natural gas, loosen regulations around poultry imports, and pledge up to $3.3 billion (£2.5 billion) in investments across US sectors like mining, according to sources quoted by Reuters.
However, these efforts failed to sway the White House. President Trump, who has consistently prioritised protectionist trade policies, justified the tariffs as a measure to shield American industries and stimulate local job growth by reducing foreign competition.
Ramaphosa Seeks Diplomatic Resolution
President Cyril Ramaphosa responded by confirming that his government remains committed to diplomatic engagement. “We are continuing negotiations with the US and have submitted a comprehensive trade framework,” he said.
At the same time, Ramaphosa’s administration is preparing an economic support package aimed at shielding domestic companies that could suffer from the US-imposed duties.
The latest announcement follows a series of diplomatic blows. Since Trump took office, relations between the US and South Africa have deteriorated sharply. The US has suspended all aid to South Africa, accusing the country of discriminatory policies against the white minority claims that South Africa has repeatedly dismissed.
Tensions Ripple Through Africa’s Trade Landscape
Trump’s tariff decision is sending ripples through Africa’s broader economic landscape. Countries like Lesotho, which produced merchandise for the Trump brand including golf shirts have also been hit hard by the policy shift.
Observers now fear the escalating friction may mark the beginning of the end for Agoa, the US trade pact that has fostered economic cooperation with African nations for over two decades. Analysts warn that its potential unraveling could undermine investor confidence across the continent.
Trump Unlikely to Attend G20 Summit in Johannesburg
Diplomatic fallout continues beyond trade. President Trump recently indicated he may skip the upcoming G20 Leaders Summit scheduled to take place later this year in Johannesburg.
“I’ve had a lot of problems with South Africa. They have some very bad policies,” he said, adding that he might “send someone else” to represent the US at the summit.
Despite the rocky road ahead, South Africa appears to be holding out hope for a resolution. President Ramaphosa remains focused on keeping communication lines open, but it remains unclear whether US policymakers are willing to ease the pressure or double down on their current stance.
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