SA REJECTS TIT-FOR-TAT BATTLE WITH US

THE government has announced its plans to counter the stiff retaliatory tariffs imposed on the country by US President Donald Trump but will not enter into a tit-for-tat battle with its second-largest trading partner.

- LOYISO SIDIMBA

Trade, Industry and Competition Minister Parks Tau yesterday urged caution over the Trump administration's new tariffs.

Earlier this week, Trump slapped several countries across the world with tariffs ranging from 10% to 73%, and in South Africa's case 31%, which will be effective from next Wednesday.

In response to the announcement, the government has detailed its plans to counter the tariffs and indicated that it needs clarity on the basis for the 31% to be implemented by the US when South Africa's average tariff is 7.6%.

Tau and his International Relations and Co-operation counterpart Ronald Lamola promised that the country will continue to navigate the challenges and opportunities these measures present with resilience and innovation.

"South Africa will work to secure opportunities, in a context of a rapid withdrawal of favourable arrangements giving our exports preferential access to the US. This might involve securing additional exemptions and favourable quota agreements, ensuring our industries maintain critical access to the US market, including through sectoral co-operation," the ministers stated.

In addition, the government will intensify efforts to diversify export destinations, targeting markets across Africa as well as in Asia, Europe, the Middle East, and the Americas.

"This diversification supports South Africa's industrial strategy and reduces dependency on single destination markets for our exports or single sources for our intermediate input requirements," Lamola said.

Tau admitted that agriculture and the Gqeberha and Buffalo City-based automotive industry will be disproportionately affected but the government is discussing plans to mitigate the impact of the tariffs on specific industries.

The government will also leverage the African Continental Free Trade Area to bolster intra-African trade and foster stronger regional economic integration and co-operation.