President Cyril Ramaphosa on Monday called US tariffs set to hit certain South African exports this week “very punitive”, and said his country would seek to limit their impact.
The 30-percent tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the United States are in tatters over a range of domestic and international policies.
“While we must act with urgency and purpose to limit the impact of these very punitive tariffs, we must also undertake measures to ensure the resilience of our economy and exports into the future,” Ramaphosa told journalists following a political party meeting in Johannesburg.
South Africa would continue to engage with Washington “with a view of normalising trade relations” while diversifying its export markets, particularly in Africa, he said.
The looming tariffs could cost the country around 30,000 jobs, government officials said earlier Monday, with the United States South Africa’s second-largest trading partner by country after China.
The South African Reserve Bank had last week warned that the levy could affect up to 100,000 jobs, with unemployment already at more than 30 percent.
The tariffs will in particular hit South Africa’s agriculture, automotive and textiles sectors, officials said, although 35 percent of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals.
– S.Africa ‘no threat’ –
Government ministers on Monday morning expressed frustration with the United States, saying South African exports do not compete with US industry and were only a fraction of that country’s total imports.
Foreign Minister Ronald Lamola told reporters that Pretoria was focused on negotiations for a new deal despite the “very extreme provocation” on the part of the United States.
The 30-percent tariff was “inscrutable” considering that imports from South Africa only represented 0.25 percent of total US imports, the minister said.
“Moreover, South Africa poses no trade threat to the US economy nor its national security,” he said, arguing the imports supported US industry and did not compete with it.
An example was that South African agriculture exports were “counter-seasonal” and so filled gaps in the US market without replacing domestic produce, he said.
Pretoria’s plummeting ties with Washington and failure to reach a new trade deal has been heavily criticised at home, including by some of the parties in the coalition government who have accused Ramaphosa and his team of diplomatic missteps.
On top of disagreements over a range of issues, including South Africa’s case accusing Israel of genocide in Gaza at the International Court of Justice, Washington in March expelled Pretoria’s ambassador after he criticised Trump’s Make America Great Again (MAGA) movement.
In a bid to avert the high tariff, South Africa had offered to import US liquefied natural gas and some US agricultural products, as well as invest in its mining and metals-recycling industries.
The government has established a support desk that will help exporters and producers explore alternative markets in the rest of Africa, Asia and the Middle East, Ramaphosa said in his weekly Monday newsletter.
It will also push forward with plans for a free-trade area for the African continent, he said.
The United States announced last week 15-percent tariffs on exports from several sub-Saharan countries, including the export-reliant small mountain kingdom of Lesotho, which had initially been threatened with 50-percent tariffs.
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© Agence France-Presse
