South Africa’s farmers and manufacturers are being urged to diversify their exports in order to minimise the damage being done by the high tariff barriers President Donald Trump is erecting around America.
South African producers face 25% tariffs on vehicles and car parts sent to the United States, while wines, fruit and other agricultural products will be liable from 9 April for an additional 30% on entry to the US. (Or is it 31% – see more on this below).
The government response so far has been cautious. Trade minister Parks Tau, while questioning the size of the tariffs being imposed on the country, made it clear that South Africa did not intend to retaliate. Instead, the focus would be on seeking a new bilateral trade deal with the US.
“I don’t think that we can contribute to the discourse by taking an adversarial approach as a country,” the Citizen quoted him as saying.
In a joint statement, Tau and international relations minister Ronald Lamola said South Africa would continue efforts to diversify export markets.
They said regional and international trade agreements and partnerships offered “huge opportunities” for South African exports. They cited the Southern African Development Community (SADC) and the African Continental Free Trade Agreement (AfCFTA), as well as trade agreements with the European Union, South America and Japan.
“In addition, the South African Government is strengthening relations with countries in Asia and the Middle East to open new market access opportunities. Some of these efforts are bearing fruit with new market access opportunities for our agriculture products,” the statement said.
