Pending 30% tariff on South African exports to the US requires calm, says Cosatu

THE pending 30% tariff on South African exports to the United States (US) require calm, frank and honest leadership by government and key stakeholders.

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They necessitate an understanding of the damage this will do to these exporters, their employees and their families.

These require thoughtful interventions to address the causes and impacts of these tariffs. The solutions will not be found in slogans, temper tantrums, hate speech or the avalanche of fake news on social media.

Cosatu like other sober organisations is deeply concerned about the devastating impact the tariffs will inflict upon an economy limping along at 1% annual growth since 2008, battling dangerously high unemployment of 43.1% and youth unemployment of 72%, entrenched levels of poverty and inequality as well as crime and corruption.

We fear the damage these tariffs by the world’s largest economy and our second biggest trading partner will cause to our agricultural, motor and other manufacturing sectors. With unemployment so high, we cannot afford to see thousands of job losses from the citrus farms of Limpopo to the wineries of the Western Cape shed, nor the gutting of thousands of motor manufacturing jobs from Gauteng to KwaZulu-Natal and the Eastern Cape.

A decline in economic activity means less tax revenue needed to fund the public services that the working class, society and businesses depend upon.

This is a real problem and it needs to be fixed urgently. The government must lead and be given the space to do so and as business, labour and society we need to provide the necessary support.