SA offers US a revised trade deal

Response to new tariff must balance trade diversification, renegotiation and protection from an import surge, says trade minister

- Nkateko Joseph Mabasa

The cabinet has approved a revised trade offer to the United States, which last week put into effect a damaging 30% tariff on local exports, the trade, industry and competition minister, Parks Tau, said this week.

The offer, presented to US representatives on 9 August, remains under wraps until it is formally put before US leaders, Tau told a joint briefing with the department of agriculture.

South Africa has said it will not retaliate against the tariff but rather seek a mutually beneficial trade deal.

"I can’t speak about the offer yet as it needs to be presented to US representatives first. But it substantively responds to the issues the US raised in its 2025 national trade estimates report," Tau said.

South Africa is one of numerous countries slapped with tariffs, which President Donald Trump argues are meant to protect US manufacturers. The tariffs are also a reflection of the frosty relationship between Washington and Pretoria over what Trump says are South Africa’s discriminatory policies against white people.

The US is South Africa’s third-largest trading partner after the European Union and China, but South Africa ranks only 43rd on the list of US importers, accounting for just 0.25% of that country’s total imports. Agriculture makes up about 4% of South Africa’s exports to the US, worth R9.8 billion ($537 million) and up 104% since 2018.

"Our goal is to demonstrate that South African exports do not pose a threat to US industries and that our trade relationship is, in fact, complementary," Tau said.

The government says the US tariffs will effectively shave 0.4% off South Africa’s economic growth and eradicate 30 000 jobs. As a response, it says it will implement the temporary employer relief scheme funding for affected companies through the department of employment and labour.