South Africa proposes new US deal to sidestep 30% tariff.
South Africa Seeks US Trade Deal to Sidestep 30% Tariffs
On Tuesday Pretoria announced a new trade proposal aimed at preventing a 30‑percent tariff that Washington imposed on a range of South African exports. The move comes after the United States slapped the highest tariff in sub‑Saharan Africa on some South African goods, a decision that Pretoria expected could trigger significant job losses.
Key Elements of the New Offer
- Expanded US Imports – The proposal includes commitments to increase American imports of South African poultry, blueberries and pork.
- Broad and Ambitious Terms – Agriculture Minister John Steenhuisen described the offer as “very broad, generous and ambitious.”
- No Public Disclosure Yet – Officials said the full details would be released at a later date.
Economic Stakes
Officials warned that a 30‑percent tariff could cost South Africa around 30,000 jobs. Unemployment was already high, standing at 33.2 percent according to data released Tuesday.
South Africa’s Trade Position
While the United States is South Africa’s third‑largest trading partner after the European Union and China, South African exports account for only 0.25 percent of total US imports. Trade Minister Parks Tau emphasized that these exports do not threaten US production.
Political Overtones
US diplomats raised concerns related to South Africa’s domestic policies—a surprise since Pretoria had believed negotiations were purely trade‑focused. The two nations are in conflict over a range of domestic and international policies, including US criticism of South Africa’s land and employment laws aimed at correcting racial inequalities.
US Criticism and South Africa’s Response
Donald Trump has criticised laws that seek to redress racial inequalities, which South Africa’s Democratic Alliance—represented by Steenhuisen—also objects to. Steenhuisen said, “Things like expropriation without compensation and some of the race laws are seen by them as barriers to trade with South Africa.”
“New Normal” in Global Trade
Steenhuisen noted that other countries such as Brazil and India have faced far more punitive tariffs because of ideological disagreements with the Trump administration. “This is obviously a new normal to which we’re all going to have to adapt,” he said.
Unprecedented Negotiations
Trade Minister Parks Tau said the negotiations were “unprecedented” because they did not follow World Trade Organization rules. “That book has been set aside for now, and we’re all grappling with the reality of the situation,” he added. He also reaffirmed South Africa’s commitment to sovereignty.
