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Prepare for tariffs, Round 3

The South African government has a few days to register for oral hearings on new United States tariffs, and a few weeks to lodge written objections.

The US plans to impose 12.5% tariffs on South Africa and 54 other countries in July, replacing the current 10% tariffs imposed in February that are about to expire. A further six countries will be subjected to new 10% tariffs. 

This will be the third set of US tariffs, each imposed under different US laws. The tariffs that expire in July (Round 2) replaced the original 30% “reciprocal” tariffs (Round 1). Those initial tariffs, announced in April last year, were ruled illegal in February and are now being refunded.

Round 3 of the US tariff assault was announced by the US Trade Representative. The basis this time is an investigation of 60 countries for what it said were failures “to impose and effectively enforce a forced labour import prohibition”. All 60 countries were adjudged to have done so, which was “unreasonable or discriminatory and burdens or restricts U.S. commerce”.

The proposals are open for public comment. Oral hearings will be held in the US on 7 July, and requests to participate must be submitted by 22 June.

Written comments must be submitted by 6 July.

The current 10% tariffs were valid for 150 days without approval from the US Congress. That period expires on 24 July and the aim is to have the new 10% and 12.5% tariffs ready by then.

After the inevitable legal challenge, will we have Round 4?