Strengthening and diversifying our trade relations with other countries is critical - BLSA

LAST week saw South Africa’s Parliament approve a phased increase in VAT, sparking debates about its impact on the economy. Meanwhile, the ongoing trade conflict with the US intensified as President Donald Trump imposed new tariffs, leading to fears of a global economic slowdown.

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As Peter Drucker once noted, “The best way to predict the future is to create it,” and South Africa must navigate these turbulent waters with resilience and strategic foresight.

I was encouraged to see a statement by ministers Ronald Lamola and Ebrahim Patel who said that the way forward is to work hard to improve relations with the US but also enhance the focus being on stimulating domestic growth and improving our trade relations within Africa and elsewhere, diversifying our export markets.

Our ministers of international relations and of trade, industry and competition rightly focused on criticising the US, but focused on what we can do to mitigate impact.

US President Donald Trump has made it clear that he wants concessions from each country to reduce or drop tariffs. He has also emphasised that the tariffs put the US in a position of power to force better deals from countries that are to come.