Gå ubegrenset med Magzter GOLD
Få ubegrenset tilgang til over 9000 magasiner, aviser og premiumhistorier for bare
Prøve GULL - Gratis
Trump’s tariff mania and the rand
Post
|April 16, 2025
THE South African rand has taken a severe blow following US President Donald Trump’s announcement of increased tariffs on imported goods.
The USA policy shift has sent shockwaves through global financial markets, with intense punishment to emerging economies like South Africa feeling the brunt of the impact.
The rand’s dip could have far-reaching consequences for the country’s economy, businesses and ordinary citizens, affecting everything from fuel prices to the cost of imports and overseas travel. While the rand’s move to almost R20 for a US dollar scared financial markets, it returned battered and bruised to almost R19 to a dollar by Monday. However, the currency volatility could spell bad times ahead.
Trump’s tariff mania started with tariff hikes on all trade partners a few weeks ago, then spiralling into a frenzy of several tiers of tariffs, with South Africa having a 30% tariff hike, the UK a 10% hike, and the implementation of a 34% tariff on Chinese imports initially, then spiking to a 104% tariff increase for China last Wednesday.
China replied with hikes in step with the USA. Last Friday, China hiked tariffs to 125% and Trump indicated that he would push the tariff on China to 145%. Financial markets were devastated in response to these hikes, and then Trump surprised the world with a 90-day freeze on tariff hikes in all countries except China last Thursday.
Why is Trump committing to tariff hikes? The simple explanation is that the Trump administration believes that increasing the tariff on imported goods, particularly Chinese goods, will force the US consumer to buy local products, boosting local manufacturing and creating jobs for the USA.
The flaw with this model is that manufacturing in modern times is machine-oriented and does not create many jobs. There is a lag in the time to establish factories, and this will force the USA operators to buy from foreign companies at high prices which will lead to a massive surge in inflation in the USA.
Denne historien er fra April 16, 2025-utgaven av Post.
Abonner på Magzter GOLD for å få tilgang til tusenvis av kuraterte premiumhistorier og over 9000 magasiner og aviser.
Allerede abonnent? Logg på
FLERE HISTORIER FRA Post
Post
KZN state hospitals face critical shortage of ICU beds
AS THE burden of disease and trauma rises, KwaZulu-Natal is facing a shortage of intensive care units (ICU) beds in the province's state-run health facilities.
1 min
November 26, 2025
Post
Breaking the silence: empowering change against gender-based violence in the Indian community
AS A BUSINESS leader, I often advise clients on regulatory and tax matters and provide counsel on challenging family situations.
4 mins
November 26, 2025
Post
Durban woman speaks out after losing both mother and brother to partner violence
KILLED 40 YEARS APART
5 mins
November 26, 2025
Post
Where did all the beggars go?
IT WAS Wednesday, early evening, November 19, as I sat at my desk in Sandton, when my peace and tranquillity were suddenly shattered by the sound of a supersonic, military jet flying over. A few minutes later, another jet thundered past, and yet again another.
1 min
November 26, 2025
Post
SA's crisis: gender-based violence at 5 times the global average
RAINBOW South Africa experiences some of the world's highest levels of violence against women. The murder of women in our blood-soaked land is five times higher than the global average.
1 min
November 26, 2025
Post
Neha says her 'heart is full' as daughter Mehr turns 7
ACTRESS Neha Dhupia's daughter, Mehr Dhupia Bedi, turned 7, and her mom shared a heartfelt note on social media.
1 min
November 26, 2025
Post
Durban’s bygone streets: a tapestry of craft and connection
STEP BACK A FEW DECADES
5 mins
November 26, 2025
Post
‘My life, my rules’: how Nevonia Moodley broke barriers while living with a rare disorder
AT 12 YEARS OLD, Nevonia Moodley was diagnosed with a tare neurological disorder that affected her mobility.
3 mins
November 26, 2025
Post
Severe nausea, vomiting in pregnancy may raise mental health risks by over 50%
WOMEN with excessive nausea and vomiting during pregnancy (hyperemesis gravidarum or HG) may be at a 50% high risk of mental health conditions, according to a study.
1 mins
November 26, 2025
Post
Africa steps into its new global role: the significance of the 2025 G20 declaration
THE 2025 G20 summit held in Johannesburg will be remembered as far more than a diplomatic first. It marked a profound shift in the global balance of moral and political authority.
4 mins
November 26, 2025
Listen
Translate
Change font size