By Thebe Mabanga
President Cyril Ramaphosa has maintained a diplomatic stance in the tariff stand-off with the United States as unions entered the fray on opposing sides of the debate.
The tariffs were confirmed in an executive order signed late on Thursday to effectively kick in on 7 August. Goods that are already en route to the United States by this Friday will not be subject to the tariffs, nor will items that will have been processed as purchased and would have left point of origin warehouse by 25 October.
For South Africa, the tariffs also do not apply on items including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy and energy products.
“President Cyril Ramaphosa notes with concern the reciprocal tariffs imposed by the United States on South African products.” the Presidency said in a statement on Friday.
“The reciprocal tariffs have been imposed by the US on a significant number of its trade partners and South Africa has not been spared. South Africa will continue negotiating with the US regarding the 30% tariff announced by the US,” the statement continued.
“Government has been engaging the United States and has submitted a Framework Deal that aims to enhance mutually beneficial trade and investment relations. All channels of communication remain open to engage with the US and our negotiators are ready pending invitation from the US.”
The Presidency also said that the government was finalising a package to support companies that were ulnerable to the reciprocal tariffs.
“The package consists of a number of measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. The details of the measures will be announced in due course.”
Earlier this week, Trade, Industry and Competition Minister Parks Tau announced that South Africa has offered to import $12 billion worth of Liquified Natural Gas from the United States over the next 10 years, while requesting markets access for poultry for about $91 million and renewed access for South Africa’s blueberries into the world’s largest economy.
South Africa has also proposed to invest in critical minerals, pharmaceuticals and agricultural machinery and protect sectors such as ship building and exports from small and medium enterprises from the effects of these tariffs. South Africa awaited feedback and a counteroffer to no avail.
On Thursday, Tau suggested the proposals have been updated but offered no new details.
The DTIC announced the creation of a support desk for affected companies. The department said the desk would provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African embassies and high commissions abroad.
The department underscored the likely impact of the tariffs.
“This tariff hike poses a direct threat to our export capacity, particularly in strategic sectors such as automotive, agro-processing, steel and chemicals amongst others.”
Ramaphosa maintained that South Africa’s trade partnership with the US was mutually beneficial and benign.
“South Africa and US trade relations are complementary in nature and South African exports do not pose a threat to US industry. Importantly, SA exports to the US contain inputs from the African continent and contribute to intra-Africa trade.”
Ramaphosa said all diplomatic efforts would be pursued and emphasised the need to keep companies and workers employed.
He also noted that government, business and export councils would assist in leading exporters to the US in pursuing alternative markets.
Tade union Solidarity has used the opportunity to drive its call for South Africa to do away with expropriation and transformation laws and condemn actors like the Economic Freedom Fighters (EFF) to refrain from using inflammatory slogans like Kill the Boer.
It also called for government to devote more resources to fighting farm murders, rescind empowerment laws and remove equity equivalents for US companies and maintain existing trade arrangements under the Africa Growth and Opportunities Act (AGOA) and existing bilateral agreements.
Solidarity pointed out the fact that South Africa’s neighbouring countries were only subject to15 % tariffs was proof that SA was being punished for its membership of BRICS and alignment with regimes like Iran and Cuba.
“This is a critical time when the trajectory of South Africa could change dramatically.
“The biggest victims of the increased trade tariff will undoubtedly be ordinary South African workers. This includes Solidarity members and other South Africans in all kinds of industries who will lose their jobs in a sinking economy,” Solidarity CEO Dirk Herman said.
The Congress of SA Trade Unions was equally concerned about the measures.
“Cosatu is extremely concerned by the impact of the 30% tariff announced by the United States on all South African exports bar minerals, to the world’s largest economy,” the federation said in a statement.
“We fear the devastation this will wreck upon farmworkers in the citrus industry from the Western Cape to Limpopo, to motor manufacturing workers from the Eastern Cape to Gauteng. No company can compete with 30% tariffs. Many may close.”
Cosatu pointed out the irony of imposing lower tariffs of 15% on countries it said have “dubious understandings of the rule of law and real human rights abuses and genocides, who will now have a real advantage over South African exports”.
The 40-year-old federation argued: “Our economy, struggling with 1% annual growth since 2008, 43.1% overall and 72% youth unemployment plus entrenched levels of poverty and inequality, simply cannot afford such a painful blow.”
Cosatu praised the DTIC’s efforts so far and called for a calm, levelheaded approach to resolving the disputes arguing that it must recognise South Africa’s sovereignty and “painful history”.
It took aim at those it blames for inciting US President Donald Trump’s misdirected anger and malice through what it considers lies, indirectly including Solidarity.
“It is long overdue that the race baiters and spewers of the most vulgar forms of hate speech and fake news are held accountable by society,” Cosatu said.
“The shamelessly unpatriotic gallivanting across the US by AfriForum, NEASA (National Employers’ Association of SA), Freedom Front Plus, Sakeliga amongst other far right racial nationalists have done real damage to Brand South Africa in the US, elevating domestic politics to bilateral tensions.”
The federation said that similarly, the “populist theatrics” by the EFF have added fuel to a fire risking thousands of jobs on South African farms, and in the automotive, clothing, textiles, chemical, jewelry, hospitality and public sectors.
US Markets were down when opening on Friday and the tariffs were found to have adversely affected manufacturing production in the United Kingdom or the Eurozone, while Capital Economics estimates that America’s effective tariff rate with the rest of the world now stands at 18%, up from 2,3 % last year.
In the latest World Economic Outlook, the International Monetary Fund (IMF) has upwardly revised global growth as well growth forecast for both the US and China, the world’s two largest economies.
The IMF now expects global growth to be 3% this year and 3.1 per cent in 2026. This is up from previous projections published in April of 2.8% and 3%, respectively. This is because a weaker dollar is now expected to counter the expected impact of the tariffs.
South Africa’s growth forecasts remain unchanged at 1% for this year and 1,3 % for 2026.
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