SA reassures on trade ties with Russia amidst looming US tariffs

Trump's statement triggers panic for countries trading with Russia, including South Africa

- SIPHELELE DLUDLA

THE Department of Trade, Industry and Competition (dtic) has sought to allay concerns regarding South Africa's trading relationship with Russia in the wake of US President Donald Trump’s recent tariff ultimatum.

Following Trump’s statement that US imports from Russia could face a staggering 100% tariff if peace talks regarding the ongoing Russia-Ukraine conflict do not bear fruit within 50 days, worries have mounted over what this means for countries engaging in commerce with Russia, including South Africa.

Russia produces 10% of the world’s crude, and it has been able to sell oil through discounted sales to China, India, Brazil and Turkey.

According to the International Energy Agency Russia earned $192 billion from oil sales last year despite western sanctions.

The oil price heading for its first weekly loss in three weeks last week after Trump gave Russia a 50-day ceasefire deadline, with the Brent crude falling by 0.5% to $69.21 per barrel by Sunday.

South Africa, a member of the BRICS economic bloc alongside Russia, has already been grappling with the ramifications of heightened tariffs on its exports to the US.

With negotiations currently underway concerning 30% tariffs affecting key sectors - from citrus and wines to minerals and automotive exports — the last thing South Africa desires is further complications on the trade front.

Despite its modest reliance on Russian imports, the figures tell a nuanced story. South Africa's bilateral trade with Russia has seen only a 7% increase, climbing from $806 million in 2023 to $864m in 2024.