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SA explores diplomatic options after US imposes 30% tariff on exports
South Africa’s government is working to secure its trade relationship with the United States after the country was hit with a 30% tariff on exports, a move that could place local industries under strain.
The tariffs, which come into effect next Wednesday, form part of broader US trade policies under former President Donald Trump. South Africa now joins a list of countries facing higher costs when exporting to the US.
Government drafts proposal to avoid export fallout
In response, the Presidency has confirmed it is preparing a new proposal aimed at preserving trade ties with the United States while protecting South African exporters from rising costs. Officials hope to secure a revised agreement that avoids excessive export fees.
Political economist Dale McKinley said that while South Africa could consider a reciprocal tariff on US mineral imports, any retaliatory action would need to be carefully planned.
“The immediate response will likely involve diplomatic engagement with the US, followed by efforts to expand alternative trade markets and protect domestic industries,” McKinley explained.
Also Read: Apple’s $300 Billion Meltdown: Trump Tariffs Wipe Out Record Market Value
Economists urge caution over retaliation
Analyst Khaya Sithole agreed that any move to mirror the US tariff must be guided by a clear understanding of how such measures would affect local businesses.
“If government wants to retaliate with its own tariffs, it must assess the broader impact on South African exporters before making a move,” said Sithole.
Also Read: Ramaphosa Condemns US Tariffs, Calls for Urgent Trade Talks
Negotiations underway
As talks continue, South African authorities remain focused on diplomacy. The Department of Trade, Industry and Competition has indicated that negotiations will be central to their strategy in resolving the trade dispute.
The 30% tariff presents a significant challenge to South Africa’s export sector, particularly industries dependent on US markets. Government is now under pressure to strike a balance between maintaining strong trade ties and shielding the local economy from harm.
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Sourced:EWN
