How US tariffs and funding cuts are impacting SA’s economy and healthcare

PARLIAMENT Speaker Thoko Didiza addressed numerous pressing matters during the 58th SADC Parliamentary Forum Plenary Assembly yesterday, highlighting the significant challenges that tariffs and funding cuts are taking on South Africa's economy and healthcare system.

- THOBEKA NGEMA

Didiza opened the discussion by focusing on the harsh realities of tariffs affecting trade within SADC member states.

“With regard to the automotive industry, it would be recalled that the US is a major destination for South African automotive exports. Proposed or imposed tariffs (e.g. 25% on vehicles) have led to higher costs and reduced competitiveness for South African-made vehicles in the US market, which could potentially slow demand,’ Didiza said.

She said the steel and aluminium industries have also been affected by the US tariffs, disrupting global supply chains and increasing manufacturing costs.

“This has put pressure on the competitiveness of the once competitive steel industry,’ Didiza said, adding that agricultural products such as wine and citrus are vulnerable to tariff escalations.

“The trade protectionism observed in America has necessitated the diversification of trade to other markets such as the Asian regions,’ Didiza said.