19.5 C
Johannesburg
- Advertisement -

SA must move with haste in face of US tariffs: Ramaphosa

- Advertisement -

Must read

By Johnathan Paoli

President Cyril Ramaphosa has issued a clear and urgent call for South Africa to adapt swiftly to the shifting tides of international trade, following the United States’ recent imposition of 30% tariffs on South African imports.

Writing in his weekly newsletter, Ramaphosa stressed the severity of the new tariffs and outlined some of the government’s immediate and long-term strategies to protect the economy and workers.

“The decision by the United States to impose a 30% tariff on South African imports highlights the urgency with which we have to adapt to increasingly turbulent headwinds in international trade,” Ramaphosa wrote on Monday.

The US is South Africa’s second largest trading partner, and these new trade barriers threaten key domestic industries such as agriculture, automotive manufacturing and textiles, all of which have long benefited from duty-free access to the US under the African Growth and Opportunity Act.

The president warned that the tariffs would have “a considerable impact” on export-dependent sectors, potentially affecting thousands of jobs and national revenue.

Ramaphosa emphasised that South African exports have traditionally complemented, rather than competed with, US industries.

He also highlighted that 22 South African companies were active investors in the US economy, in sectors ranging from mining and chemicals to food and pharmaceuticals.

As an example of mutual benefit, Ramaphosa pointed to South African citrus exports, which helped stabilise prices in the US during counter-seasonal months when American citrus production was low.

The US citrus sector has also been weakened by long-term challenges such as low yields and citrus greening disease, making imports essential to meet consumer demand.

Despite the setback, Ramaphosa reiterated that the government would continue engaging with US authorities through all available diplomatic channels to seek a reversal or softening of the tariffs.

But, crucially, the president stressed the need for rapid domestic action, warning that “complacency will not serve us.”

The South African government is moving to diversify export markets and reduce dependence on any single partner.

Ramaphosa said the new Export Support Desk would assist producers affected by the US tariffs.

Details of a support package for vulnerable companies, workers and sectors would be released soon.

This package is expected to include mechanisms for helping exporters expand into alternative markets, particularly in Africa, Asia, the Middle East and countries with existing trade agreements.

The African Continental Free Trade Area (AfCFTA) was identified as a key opportunity to strengthen intra-African trade and develop resilient regional value chains.

“Reducing over-dependence on certain markets is a strategic imperative to build the resilience of our economy,” the president wrote.

He described this challenge as an opportunity to accelerate the implementation and expansion of AfCFTA.

In the coming months, South Africa will intensify trade missions, both within Africa and to new global markets, while scaling up the National Exporter Development Programme to expand the base of export-ready businesses.

Ramaphosa urged both government and industry to treat this moment with the seriousness it deserves.

The president called for South Africa to act swiftly, decisively and strategically to secure its economic future.

INSIDE POLITICS

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Inside Metros G20 COJ Edition

JOZI MY JOZI

QCTO

Inside Education Quarterly Print Edition

Latest article