US message Is step out of line and pay the price

SOUTH African exports to the US have been slapped with a 30% tariff. A blow, yes, but not a surprise. These tariffs don’t exist in a vacuum. They are the latest move in a pattern of diplomatic pressure from the US, and they arrive on the back of months of threats to review South Africa's eligibility under the African Growth and Opportunity Act (AGOA).

- CHLOE MALULEKE

The politicisation of AGOA and the new tariffs, raises questions about the conditionality of so-called development partnerships and global trade. Is economic cooperation only valid when African states remain silent and compliant on global political issues?

Government estimates more than 100 000 jobs could be lost across key sectors, at a time when unemployment is hovering above 32%. Communities stand to lose income, security and dignity, but what's equally staggering is how little South Africa exports to the US. We make up just 0.25% of all US imports, less than a rounding error in Washington's trade book.

Our exports don’t compete with American industries, they complement them. Our fruit, for instance, is counter-seasonal, plugging supply gaps in the US market rather than replacing local produce. So what, exactly, is being punished?

The answer, of course, has little to do with economics and everything to do with power. This is not about trade. It’s about sending a message. And that message has been loud, blunt, and unmistakable - step out of line, and pay the price.

The US administration's discomfort with South Africa's independent foreign policy, especially its stance on global conflicts and ties with BRICS partners — has clearly influenced this economic escalation. Washington's displeasure has shifted from diplomatic rhetoric to economic punishment. Threatening to revoke AGOA benefits, in tandem with the new tariffs, sends a powerful signal that dissent from Global South nations will be met with financial consequences.

To compound the blow, Danish shipping giant Maersk has announced it will halt direct cargo shipments between South Africa and the US, effective October 1.