Trade Minister Parks Tau has warned of ongoing uncertainty ahead of the U.S. decision on July 9, noting that global developments pose direct and indirect risks to South Africa’s trade and growth. Image: Creamer Media.
(The Post News)- South Africa has formally asked the United States not to raise tariffs on its exports while the two countries are still negotiating a new trade framework. This comes ahead of a looming July 9 deadline, when a temporary 10% tariff rate on South African goods is set to expire. Without an agreement in place, tariffs could jump to 30%, a level first announced by former US President Donald Trump in early April as part of a broader policy shift targeting America’s trade deficits.
Speaking to Parliament’s Portfolio Committee on Trade, Industry and Competition, Minister Parks Tau said the outcome of the US decision remained unclear, and warned that global trade tensions could affect South Africa both directly and indirectly. “We are facing a lot of uncertainty around what the US will decide,” Tau said, adding that the country’s economic prospects were also being weighed down by internal challenges.
Ambassador Xolelwa Mlumbi-Peter, the deputy director-general for trade at the Department of Trade, Industry and Competition (dtic), told MPs that while discussions with the US were ongoing, it was unlikely that a final deal would be reached by the deadline. She said South Africa had proposed that tariffs remain at or below 10% until talks conclude. “We’ve asked that, during this negotiation period, South Africa’s current access to the US market be preserved, especially for key value-added exports,” she explained.
That includes products still trading under preferential terms through the Africa Growth and Opportunity Act (AGOA). The proposed trade framework includes a wide-ranging offer from South Africa, covering areas like US investment in local gas infrastructure, cooperation on agriculture and digital trade, and improved access for South African fruits such as mangos, citrus, and avocados. There’s also a focus on joint work in critical minerals and development finance.
The US currently enjoys a services trade surplus with South Africa and exported goods worth $5.8 billion to the country last year, while importing nearly $15 billion worth of South African goods. Minister Tau stressed the importance of the US as a trading partner but said local economic reforms must also play a role in lifting South Africa’s sluggish growth. He confirmed that a revised industrial strategy was under development and would soon be submitted to Cabinet.
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