Tuesday, July 8, 2025

Why South Africa rejects Trump’s 30% tariffs

Must read

Elvis Adjetey
Elvis Adjetey
Elvis Adjetey is an experienced African journalist who has worked with top media brands in Ghana where he is based.

South African President Cyril Ramaphosa has condemned a sweeping 30% tariff imposed by the United States on South African exports, calling the move “unilateral” and “misrepresentative” of the actual trade dynamics between the two nations.

The tariffs, announced Monday by U.S. President Donald Trump, are scheduled to take effect on August 1 and will apply to all South African goods entering the American market.

South Africa is the only African nation targeted in this latest round of tariff hikes, signaling a sharp escalation in trade tensions between Washington and Pretoria.

In a formal letter to President Ramaphosa, Trump accused South Africa of engaging in unfair trade practices and contributing to persistent trade deficits.

“We must move away from these long-term, and very persistent, trade deficits engendered by South Africa’s tariff, and non-tariff, policies and trade barriers,” Trump wrote.

- Advertisement -

He also warned that any retaliatory measures from South Africa would be met with additional tariffs. “If you wish to open your heretofore closed trading markets… we will, perhaps, consider an adjustment to this letter,” he added.

President Ramaphosa swiftly rejected the accusations, arguing that the trade relationship between the two countries is more balanced than portrayed.

“More than half of the goods South Africa imports from the U.S. are not taxed, and the average tariff on the rest is just 7.6%,” he said. “This 30% tariff is based on a particular interpretation of the balance of trade.”

Ramaphosa emphasized that South Africa remains committed to resolving the dispute through diplomatic channels. “We will continue to engage with our U.S. counterparts to ensure a more balanced and mutually beneficial trade relationship,” he said.

The tariffs are expected to hit South Africa’s economy hard, particularly its automotive and agricultural sectors, which have long benefited from preferential access to the U.S. market under previous trade agreements. The United States is South Africa’s second-largest trading partner.

Relations between the two countries have deteriorated since Trump returned to office. Earlier this year, he suspended aid to South Africa, citing alleged discrimination against the white minority—claims the South African government has categorically denied.

Despite Ramaphosa’s efforts to mend ties, including direct talks with Trump in May, the tariff decision underscores the growing diplomatic rift. Trump, however, left a narrow window open for negotiation. “I would say [the deadline] is firm, but not 100% firm. If they call and say they’d like to do something a different way, we’re going to be open to that,” he said.

As African nations increasingly seek favorable trade terms with global powers, South Africa now faces a high-stakes confrontation with one of its most influential economic partners.

Can Nigeria’s new opposition alliance challenge Tinubu in 2027?

Source: Africafeeds.com

- Advertisement -

More articles

- Advertisement -

Latest article

- Advertisement -