Ramaphosa Rejects Trump's 30% Tariff Proposal

President Cyril Ramaphosa took to social media to respond to Trump’s decision to impose 30% trade tariffs against South Africa. In that post he notes that he received a letter from President Trump regarding the recent 30% trade tariff imposed on South Africa. Trump stated that the tariff is insufficient to address the trade deficit between the two countries. However, Ramaphosa countered that the tariff is based on a disputed interpretation of South Africa’s duties on U.S. goods, pointing out that the average tariff on U.S. imports is below 8%, with most U.S. goods entering the country duty-free.

In the latter to Ramaphosa, the U.S. says it may reduce the tariffs, provided that South Africa reduced tariffs and non-tariff barriers for U.S. goods. Meanwhile, Ramaphosa had acknowledged U.S. commitment.

In May, South Africa proposed a trade deal to the U.S., offering concessions on natural gas and fracking technology imports in exchange for duty-free quotas on steel and vehicles. The deal also included tariff-free access for U.S. farmers to the South African market during the off-season. However, the U.S. rejected this proposal and instead created a new trade template for all African countries, which South Africa would need to adhere to.

Despite requesting more time to negotiate, the U.S. has refused. Ramaphosa has instructed his team to urgently engage with the U.S. on the original deal, which he believes addresses the issues raised by the U.S., including trade surplus and unfair trade practices. Ramaphosa is pushing for accelerated diversification efforts to promote resilience in global supply chains and the South African economy.

The U.S. has sent letters to 14 countries, announcing plans to impose tariffs on various goods. The proposed tariffs range from 25% for countries like Japan and South Korea to 40% for countries like Laos and Myanmar. Each country’s letter is similar, with the only differences being the recipient’s name and the specific tariff percentage. Trump has publicly released some of these letters, which inform the leaders of the affected countries about the impending tariffs.