Strengthening and diversifying our trade relations with other countries is critical - BLSA

LAST week saw South Africa's Parliament approve a phased increase in VAT, sparking debates about its impact on the economy. Meanwhile, the ongoing trade conflict with the US intensified as President Trump imposed new tariffs, leading to fears of a global economic slowdown.

- BUSISIWE MAVUSO

Trump's sweeping tariffs have ignited trade wars, causing market turmoil and uncertainty.

As Peter Drucker once noted, "The best way to predict the future is to create it," and South Africa must navigate these turbulent waters with resilience and strategic foresight.

I was encouraged to see a statement by ministers Ronald Lamola and Parks Tau largely agree that the best way forward is to work hard to improve relations with the US but also enhance the focus both on stimulating domestic growth and improving our trade relations within Africa and elsewhere, diversifying our export markets.

Our ministers of international relations and of trade, industry and competition rightly refrained from criticising the US but focused on what we can do to mitigate the impact.

US President Donald Trump has made it clear that he wants concessions from each country to reduce or drop the tariffs. He also emphasised that the tariffs put the US in a position of power in the series of bilateral negotiations that are to come.

Given the transactional nature of US politics, we have to think hard on what is commercially available and viable for all parties. The US has exempted many of our key metal exports, including platinum, gold, manganese, copper, zinc and nickel, because these are considered critical to the US economy.