SA must broker new US trade deal amid tariff threat, BRICS Business Council leader says

SOUTH Africa must urgently pursue a new trade deal with the US to safeguard its economic interests amid rising tariffs and President Donald Trump's "Liberation Day" policy threatening to unravel decades of duty-free access under the African Growth and Opportunity Act (Agoa).

- PHILIPPA LARKIN

Dr Stavros Nicolaou, a member of the South Africa BRICS Business Council who is responsible for the trade portfolio, said in an interview on Friday that a new replacement for Agoa is vital following the US imposition of a 30% tariff on South African goods, effective from Wednesday (April 9), alongside a global 10% import levy announced on April 2.

The US is by far the market for South Africa's intermediate imports, Agoa, which accounted for 7.7%, or $115.6.9 billion, of all South Africa's exports to the world in 2024. A large portion of such exports is entering the US market duty-free under Agoa.

The measures, part of President Donald Trump's pledge to address trade imbalances, imperil Agoa, which has enabled SA to be a net contributor in African exports - vehicles (64.2%), platinum, and citrus - to the US in 2024 alone. With Agoa's potential renewal due in September, Nicolaou warned of an economic cliff edge.