Trade, Industry and Competition Minister Parks Tau has reaffirmed South Africa’s commitment to a conclusion on the US trade deal.
“South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States. We also want to reiterate that we have no intention of decoupling from the United States either. Our view is that negotiations remain the best tool to deal with the issues that are on the table,” said the Department of Trade, Industry and Competition (dtic).
In a statement on Wednesday, the dtic said the intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and that a reset is "unavoidable".
Earlier this month, President Cyril Ramaphosa noted the correspondence from the United States (US) President Donald Trump on the unilateral imposition of a 30% trade tariff against South Africa.
READ | President notes US tariff announcement
In a letter addressed to President Ramaphosa, President Trump announced that he would subject imports from South Africa to new 30% tariffs, that would take effect from 1 August 2025.
At the time, the Presidency said the 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States, and that the contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States.
On Wednesday, the dtic said South Africa is not in a unique position, as the United States attempts to finalise negotiations with some 185 countries around the world by 1 August 2025.
“We remain committed to the cause as we await substantive feedback from our US counterparts on the final status on our Framework deal,” said the department.
The deal featured a number of areas, including but not limited to:
• Importing 75 -100 petajoules of Liquified Natural Gas for a 10-year period, unlocking $12 billion.
• Agricultural Market Access by simplifying of US poultry exports under the 2016 tariff rate quota and unlock approximately $91m million in trade. In addition, readiness to open market access for blueberries, subject to necessary protocols.
• South African firms committed to invest $3.3 billion in US industries, such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agri-machinery.
• Exemption of specific sectors from reciprocal tariffs to preserve supply chains e.g. ship building, counter-seasonal agriculture trade, exports from MSMEs of less than $1 million per annum.
“As the Department of Trade, Industry and Competition, we have been in a period of intense negotiations with the United States. We have signed a condition precedent document and have readied our inputs for entry into the template, which is to follow from the US.
“Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks, who have dug deep to ensure that our country is adequately prepared for a number of potential scenarios. We have planned for these scenarios and have not sat idle,” the department said.
Support desk
In addition, the department is working with other government departments on a response plan, which includes a support desk within the dtic.
“Our response package also focuses on demand side interventions in the impacted industries. The way forward is clear. President Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution that is mutually beneficial.
“The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable,” the department said. - SAnews.gov.za
