US tariffs threaten South African jobs, warns Cosatu

SOUTH Africa is facing a looming economic crisis following the United States’ announcement of a sweeping 30% tariff on its exports - a move that has sparked widespread concern among trade unions, political leaders, and business analysts.

- PHILIPPA LARKIN

Cosatu Parliamentary Coordinator, Matthew Parks, on Tuesday said Cosatu is deeply concerned about the 30% tariff announced by US President Donald Trump, because it will have a devastating impact on the economy that has been languishing at 1% growth rate and a shockingly high unemployment rate of 43.1%.

Sectors that will be hard hit include the automotive, agriculture, clothing, chemical and jewelery.

"Worryingly, the impact of the impending tariff is already being felt in the Eastern Cape with 900 jobs on the line at Good Year SA and Mercedes Benz "temporarily" shutting down its vehicle production," it said.

Cosatu said it is clear more engagement with the US government is required is find alternatives that will be beneficial for jobs and businesses in both countries. "It is also critical that South Africa works to expand relations with other trading partners to mitigate reliance on the US," it said.