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Tariff turmoil: South Africa opts for diplomacy over quick retaliation in trade dispute

In a diplomatic dance, South Africa's ministers are tiptoeing around Trump's newly imposed tariffs, opting for dialogue over retaliation.
Tariff turmoil: South Africa opts for diplomacy over quick retaliation in trade dispute United States President Donald J Trump has imposed a 30% trade tariff on South Africa. (Photo: EPA-EFE/Chris Kleponis / Pool)

A day after US President Donald Trump announced reciprocal tariffs, with South Africa facing a 30% import tariff, the government said it would not impose tariffs yet, warning that responding without understanding how the US set the rate and without first talking to the US could be counterproductive.   

Trade and industry minister Parks Tau and International Relations Minister Ronald Lamola made the remarks on Friday, 4 April 2025, during a joint media briefing in Midrand, Johannesburg.   

This comes after the Trump administration on 2 April 2025 introduced a 10% baseline tariff on all imports, with South African goods facing a specific rate of 30%. This decision is expected to have a negative impact on various South African exports, such as vehicles, precious metals, machinery, and citrus fruits.   

trump

While trade experts have already warned that the tariff increase will affect ordinary South Africans, causing an increase in export prices, inflation, jobs, and interest rates, the government says the right thing to do is to engage the US administration. 

“I think it’s a risky thing to do, to simply decide that we’re now going to impose reciprocal tariffs. I think it would be ill considered to simply just make a decision to impose reciprocal tariffs.  

“Our mandate is to engage, to find solutions and to resolve problems,” Tau said.      

The tariff has effectively negated South Africa’s lucrative duty-free exports into the US under the African Growth and Opportunity Act (Agoa).

Daily Maverick reported that South Africa is, in any case, likely to be booted out of the Agoa programme soon because of the Trump administration’s hostility to many of its domestic and foreign policies.   

Read more: Trump’s tariff teardown, the broken maths behind it and the global fallout 

Agoa itself is due to expire in September and it seems unlikely to be renewed, given Trump’s extreme dislike of non-reciprocal or any free trade. Tau, when quizzed by journalists, confirmed that the tariff had nullified the Agoa benefits.   

Lamola said: “The new tariff regime arising from the decision by the United States of America, which has been directed not only at South Africa but at the entire world, necessitates strategic responses to maintain and grow our industrial base as a crucial avenue to pursue inclusive growth. In response to the US government’s imposition of tariffs, South Africa will continue to navigate the challenges and opportunities these measures present with resilience and innovation.”  

Efforts to diversify export destinations would be intensified, the ministers said. 

Despite the urgency of the situation, both Tau and Lamola would not provide a definitive timeline for when President Cyril Ramaphosa would send a delegation to the US, but simply said  he would do so “at the right time”.    

Relations between the two countries have been strained over issues including the Expropriation Act and South Africa’s legal actions against Israel, to name a couple. 

Last month, South Africa’s ambassador to the US, Ebrahim Rasool, was expelled. US Secretary of State Marco Rubio described Rasool as a “race-baiting politician” with hostile views toward both America and Trump. He declared Rasool “persona non grata”, effectively removing him from the US.   

Read more: Process to replace Ebrahim Rasool yet to begin but Ramaphosa ‘inundated’ with volunteers for US ambassador job 

His expulsion came after he made comments during a webinar hosted by the Mapungubwe Institute for Strategic Reflection, in which he accused Trump of pushing policies aimed at addressing the changing demographics of the US, which he argued were part of a wider supremacist agenda.  

Now Ramaphosa, who has received a report on the events leading to Rasool’s expulsion, is applying his mind on who to appoint, given the strained diplomatic relations with Washington.

Lamola said that while the president would not rush the process, he planned to appoint a special envoy for now to help ease tensions and improve relations. DM

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Comments (6)

Fanie Rajesh Ngabiso Apr 4, 2025, 02:35 PM

This is what Trump is counting on world wide I think. i.e. "Each of you grovel before the great USA" is his negotiating tactic. He is counting on the fact that each country is not in a position to take the game to him. The best defense is for all affected country leaders to "call each other" and set up a united front to protect all our interests. Whether he knows it or not Trump is sitting on a "ticking US popularity time bomb".

Arnold O Managra Apr 4, 2025, 11:08 PM

The US "popularity" has been pretty much zero for a long time now, possibly starting with the idiotic military invasion of Iraq. I think it's fair to suggest that the USA gets no zeitgeist kudos for all the good work they do, including PEPFAR, and genuine intent to help poor countries. Given that the global media has nothing good to say about the USA, I think it's fair for them to reset the zeitgeist. It's also good for SA and other countries to chop the umbilical cord.

Michele Rivarola Apr 5, 2025, 07:24 AM

Beggars can’t be choosers, ever heard that saying. Diplomats so far have made matters worse because they are not diplomats they are cadres masquerading as civil servants. The message from the US was loud and clear yet we repeat the same exercise expecting a different outcome that will never materialize. Send business people they will find a solution but sending politicians disguised as diplomats will only but make matters worse

Fanie Rajesh Ngabiso Apr 5, 2025, 07:44 AM

You're calling BRICS a beggar? :D

Fanie Rajesh Ngabiso Apr 5, 2025, 08:12 AM

From where I sit, the US is going to find out soon that they've overplayed their hand, and that its time to back pedal - hard. It will just take a few countries to work together and Trump will soon start singing an entirely different tune.

Fanie Rajesh Ngabiso Apr 6, 2025, 12:04 PM

How're the tariffs going for you then Michele? Good so far? :D :D :D

Vincent L Apr 5, 2025, 03:51 PM

Agree with your groveling comment. Trump loves it when people grovel to him and what he will demand from them. Not for the USA though. For his own back pocket. SA and Lesotho have huge diamond reserves (amongst others) that he would love to get his hands on for his billionaire friends.

Peter Geddes Apr 4, 2025, 04:14 PM

Good move not to retaliate like bully boys trading blows …. Trump and the US will always win at that game. Let’s please have a more carefully thought out approach that actually takes into account, not the egos of the politicians, but the interests of our people, especially those without the means to adapt to what will be harsh changes.

peterdncn Apr 5, 2025, 07:11 AM

The ANC is acting correctly here, which is not how it always acts

Rae Earl Apr 5, 2025, 07:42 AM

"The Ugly American" published during the Cold War, depicts the US's complete lack of understanding of foreign nation's cultures and norms. The is Donald Trump's narcissistic persona to the core. It has a positive aspect however. Nations are uniting as they did from 1939 to 1945, against mindless aggression. History is repeating itself against a different perceived enemy this time, America. There can be only one loser in the long run. The US.

Fanie Rajesh Ngabiso Apr 5, 2025, 11:00 AM

This I agree with - its just that the "long" in "long run" is an unknown. Easier to predict is the "short" in "short run" in which everyone everywhere will feel pain.

keith.ciorovich Apr 6, 2025, 05:03 PM

Trump and Musk are narcissistic morons. "Ramaphosa applying his mind" , I don't think so. More like he now realizes the precarious position the country is in. Best to keep our head down for now. The idea of sending a delegation to America will be pointless.

Freda Brodie Apr 7, 2025, 12:05 AM

I personally hope this trade war will eventually produce no tariffs whatsoever worldwide. I mean we know why he’s doing it.. And I understand why. Then off course we have the Anc to thank. Most ANC leaders will probably face sanctions, that’s why Cyril is quiet, I think.

Fanie Rajesh Ngabiso Apr 7, 2025, 08:24 AM

If you do understand the what and why, please explain them because there isn't an economist I can find who understands either!