US Tariffs Will ‘Shift Alliances’

SA Must Identify Alternative Markets to Avoid 30% Import Charges

- Brian Sokutu

South Africa is among countries reeling from US President Donald Trump's latest raft of tariff hikes, but the economic squeeze is likely to be a strong catalyst for realignment of allies, markets and opportunities, experts say.

Trump's sweeping tariffs on US imports, which also include American allies Israel and Taiwan, have sparked global condemnation, with some countries threatening retaliation.

US total goods trade with the European Union (EU) was last year estimated at $975.9 billion (about R18 trillion), while with Canada it was $762.1 billion – a picture analysts said could change.

According to political economist Dale McKinley, Canada and European countries will be among those scrambling for new markets and opportunities, affecting trade with the US.

“US tariffs are certainly going to become a catalyst for realignments. Obviously, affected countries are going to try to engage the Trump administration for exceptions on tariff hikes.

“You either grow your markets and maintain them or replace those that you are going to be losing in the US.

“Most realignments are likely to be on the economic front. But I do not see them in the shorter term necessarily resulting in political realignments.

“Due to the new economic relationships and expansion of markets, you cannot rule out people being brought together on the political front,” said McKinley.