President Cyril Ramaphosa has opposed a new 30% tariff imposed by the US on South African goods, as he believes it is based on inaccurate trade data.
The US government, under President Donald Trump, informed South Africa and other countries of the decision on Monday.
“This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States,” Ramaphosa said.
“This contested interpretation forms part of the issue under consideration by the negotiating teams from South Africa and the United States.
“Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data.”
Imported goods should be at 7.6%, he said, based on the interpretation of the trade data available; 77% of US goods are imported at 0% tariff, and 56% of goods entering the country are duty-free under the 0% most-favoured nation tariff.
Despite the disagreement, Ramaphosa said he hoped a diplomatic solution could be found.
Tariff subject to modification
“We welcome the commitment by the US government that the 30% tariff is subject to modification at the back of the conclusion of our negotiations with the United States,” Ramaphosa said.
According to him, the US and South Africa met on June 23 at the US-Africa Summit in Luanda.
Ramaphosa said that this is where the Americans discussed plans for a new trade strategy with sub-Saharan African nations, and South Africa is still awaiting the model.
Ramaphosa has given his team instructions to discuss with the Americans the framework agreement that South Africa sent to the US on May 25.
“This framework deal addresses the issues initially raised by the US, including South Africa’s supposed trade surplus, unfair trade practices, and lack of reciprocity from the US.”
Additionally, he has urged government trade teams and South African companies to accelerate their efforts to enter new markets in order to strengthen and stabilise the country’s economy and global supply chains.
