South Africa Rejects U.S. Tariff Hike, Urges Immediate Trade Talks

by Hope Ngobeni

image source

President Cyril Ramaphosa has formally rejected the 30% tariff imposed by the United States on South African goods, calling for urgent trade negotiations to de-escalate rising economic tensions.

The tariff β€” announced by U.S. President Donald Trump on July 7, 2025 β€” targets South Africa as part of a broader crackdown on what Washington claims are unbalanced trade relationships. But Ramaphosa’s response firmly contests the premise.

In a statement released on Monday, the president said the U.S. interpretation of the trade deficit was β€œmisleading and unsubstantiated.” He cited that 56% of goods entering South Africa do so tariff-free, while 77% of U.S. exports to South Africa already enjoy duty-free access.

South Africa’s average import tariff of 7.6% further undermines the claim of trade unfairness, according to Ramaphosa, who emphasized Pretoria’s ongoing commitment to a rules-based, multilateral trade system.

The President revealed that South Africa submitted a Framework Deal to U.S. negotiators on May 20, 2025, which addresses key concerns raised by Washington, including alleged trade imbalances and regulatory barriers.

That deal is now the basis for South Africa’s renewed push for constructive dialogue, with Ramaphosa instructing trade officials to intensify engagement efforts and explore new global partnerships to reduce reliance on any single trading bloc.

The diplomatic standoff comes just weeks after the U.S.–Africa Summit in Luanda (June 23), where a U.S. trade template for sub-Saharan Africa was reportedly shared β€” but is still under review in Pretoria.

Despite the tariff blow, hope for resolution remains. Washington has signaled that the 30% duty may be revised following successful talks, creating a narrow but critical window for a negotiated outcome.

In the meantime, Ramaphosa has called on local industries to accelerate diversification strategies, including deeper integration into global value chains, to cushion South Africa’s economy from future external shocks.

You may also like

Leave a Comment

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00