The South African government has responded to a letter from former US President Donald Trump announcing a 30% tariff on South African exports to the United States. Trump’s correspondence also warned that any increase in South Africa’s tariffs on US imports would be met with reciprocal measures.
In a statement, the South African presidency affirmed its commitment to ongoing diplomatic efforts aimed at fostering a “balanced and mutually beneficial trade relationship” with the US. It also welcomed Washington’s openness to revising tariffs once bilateral negotiations conclude.
Disputed Trade Figures Fuel Tensions
Kaamil Alli, spokesperson for Trade Minister Parks Tau, clarified that South Africa disputes the US’s claimed $9.1 billion trade deficit, estimating it at just $1.2 billion. “Given this discrepancy, the proposed 30% tariff is unjustifiably high,” Alli said in an interview.
South Africa accounts for only 0.4% of total US imports, raising questions about the severity of the tariff hike. Alli emphasized that Pretoria prefers negotiation over retaliation, stating, “A reciprocal response benefits neither country.”
Diversifying Trade Partnerships
With tensions rising, Alli highlighted South Africa’s efforts to expand trade within BRICS and other Global South nations. “While the US remains a key partner, diversification is crucial,” he said, signaling a strategic pivot amid strained US relations.
Uncertainty Over US Trade Template
South African officials also expressed confusion over a US trade template discussed at a recent US-Africa summit in Angola. Alli confirmed Pretoria has not yet seen the document and urged urgent talks to align negotiation frameworks.
Optimism for a Resolution
Despite the challenges, Alli expressed confidence in reaching a deal before the August 1 deadline, citing transparency and evidence-based negotiations.
As talks continue, South Africa aims to avert a full-blown trade war while safeguarding its economic interests.