South Africa has responded to recent 30% U.S. tariff signaling its willingness to negotiate diplomatically but also look to other markets.
The US tariffs are set to be rolled out by August 8. South Africa’s government is one of the hardest hit in Africa.
Tens of thousands of job losses, especially in the agriculture and carmaking industries are imminent, as Trump pushes to reshape global trade in favour of the United States.
The South African government officials announced at a press briefing exemptions from some competition rules and financial support facilities.
The officials dismissed speculation that its failure to negotiate a lower tariff was because of its local affirmative action policies, which U.S. President Donald Trump has criticised.
South Africa is the continent’s biggest economy and has struggled to negotiate a deal with Washington, offering to buy U.S. liquefied natural gas and invest $3.3 billion in U.S. industries in a “framework deal” proposed to Trump’s team.
Pretoria said it made a last-minute attempt to improve its offer but those efforts were unsuccessful.
South Africa’s trade and foreign ministers said a “block exemption” from some aspects of the Competition Act was being developed that would allow competitors to collaborate and coordinate.
They said the exemption would be published by the end of this week.
The government is also working on a support programme, which will include a working capital facility and plant and equipment facility, and ways to cushion the impact of job losses via the Unemployment Insurance Fund.
The ministers said South Africa posed no “trade threat to the U.S. economy nor its national security,” emphasising that its exports supported the U.S. industrial base and often do not compete with U.S. products.
Foreign affairs minister Ronald Lamola also signalled that South Africa would continue to engage with U.S. counterparts on the basis of the framework deal it had submitted.
