U.S. President Donald Trump holds a signed executive order during an event in the East Room of the White House, Tuesday, April 8, 2025, in Washington. Image: AP.
(The Post News)- On July 9, 2025, the United States (U.S.) president Donald Trump set a tariff deadline for six countries as part of ongoing trade negotiations. The six nations involved in the tariff negotiations include Brazil, Russia, India, China, and South Africa and Iran (BRICS).
BRICS was formed to build a strong shared currency and political alliance, so the six nations wouldn’t have to depend on the United States. Brazil is the key founding member of BRICS and later joined by Russia, India, and China, with South Africa becoming a member in 2010.
The goal of BRICS is to reduce reliance on the U.S. dollar and become more economically self-sufficient. By creating a new, stronger currency to reduce the power of the U.S dollar. However, the U.S. president has expressed dissatisfaction with the formation of BRICS.
Tariffs on the BRICS countries have been raised to 30% with an additional 10% penalty for being part of the BRICS alliance. On the other hand, Brazil faces a higher tariff of 50% as Trump targets it specifically for its strong support of BRICS
Trump has set an urgent deadline of August 1, 2025, for other BRICS- associated countries, including Japan, South Korea, South Africa, Kazakhstan, Laos, Malaysia, Myanmar, Tunisia, Bosnia, and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, Thailand, Brazil, Sri Lanka, Algeria, Brunei, Iraq, Libya, Moldova and Philippines.
Canada also has distanced itself from the United States, choosing to stop using American Services like banks and asserting its economic independence. The U.S. dollar is no longer treated as the dominant currency in trade and financial dealings.
https://www.sabcnews.com/sabcnews/trump-tariff-war-and-south-africa-strategic-analysis/
The 30% tariffs imposed on South Africa are expected to have a negative impact on businesses over the next five years. The tariffs are expected to negatively impact key sectors in South Africa, namely sectors, agriculture (USD 230 million), automotive (USD 582 million), and machinery (USD 131 million). In the short term, this could result in a loss R48 billion in revenue, rising to R315 billion over the next four years.
In a press release statement, the Minister of Agriculture, John Steeinhuise, has voiced concerns about the 30% tariff hike, warning it could have devastating consequences for South Africa’s economy particularly in key experts.
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