The official says Pretoria is looking into how Trump arrived at the 30% “reciprocal” tariffs he imposed on goods from the country
Minister of Trade, Industry, and Competition, Parks Tau, has pledged to engage with the United States government for clarity regarding the 30% tariff imposed by President Donald Trump.
This decision follows an announcement by Trump of reciprocal tariffs affecting various countries, including South Africa, which will come into effect on April 9.
Speaking with the media at the Gauteng Investment Conference held on Thursday in Johannesburg, Tau expressed confusion over the method used by the US to calculate the tariff adjustments.
He stated, “We are all trying to work out how the US arrived at 60% discounted to 30%, as the tariffs that we are having, and therefore the discount.”
The South African government currently imposes much lower tariffs on US goods, averaging around 7.6%, in stark contrast to the 30% tariffs affecting their exports to the US.
The sudden announcement of these tariffs has been attributed to Trump’s broader strategy of reinstating tariffs on countries like China, the United Kingdom, and others.
Trump indicated that “a lot of bad things” are happening in South Africa, which has prompted concerns about trade relations moving forward.
Questions surrounding the rationale behind the US’ high tariff rates are emerging, with speculation that the calculations may involve various factors, including the trade balance.
”At this point, we are going to need clarity from the US as to how they arrived at the number and how they would want to engage,” Tau added.
Earlier on Thursday, IOL News reported that the implications of these tariffs could prove to be damaging, particularly for key sectors in South Africa such as agriculture, manufacturing, and automotive.
Dr Ernst van Biljon, head lecturer and programme coordinator in Supply Chain Management at the IMM Graduate School, warned of the potential for severe economic disruption.
”The sheer scale of disparities, with some countries facing near-50% tariffs, signals a potential for major trade disruption,” he said.
Meanwhile, chairperson of the federal council of the Democratic Alliance (DA), Helen Zille, expressed particular concern for South Africa’s automotive industry.
“It is going to be disastrous for our automotive industry in particular if they have 30% tariffs slapped on our motor vehicles that are made in the facilities of Pretoria and Nelson Mandela Bay. Obviously, it is going to be terrible for us,” she stated.
