President Cyril Ramaphosa has officially responded to a recent communication from US President Donald Trump regarding the unilateral imposition of a 30 percent trade tariff on South African exports to the United States.
According to a statement from the Presidency, South Africa received the correspondence on July 7, alongside several other countries affected by the tariff decision.
The South African government has described the move as based on a “contested interpretation” of trade data between the two countries.
The statement stated, “This 30 percent tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data.”
The Presidency argued that, contrary to the US position, South Africa maintains a relatively open trade environment explaining that official figures show that 56 percent of goods enter South Africa duty-free under a Most Favoured Nation (MFN) tariff, while 77 percent of US goods enjoy a 0 percent duty rate when entering the South African market and that the average tariff on imported goods is pegged at just 7.6 percent.
Despite the escalation, Pretoria has reaffirmed its commitment to constructive engagement and a mutually beneficial outcome. President Ramaphosa welcomed the indication from Washington that the 30 percent tariff could be reviewed following ongoing negotiations.
According to him, South African and US trade officials have remained in contact, including during a recent meeting on the sidelines of the US-Africa Summit in Luanda on June 23.
He said it was at this meeting that South Africa was made aware of a new US template for trade engagement with sub-Saharan Africa stressing the template has yet to be shared with Pretoria.
President Ramaphosa has instructed his negotiating team to urgently re-engage with their American counterparts based on South Africa’s Framework Deal, submitted on May 20.
The proposal reportedly addresses key concerns raised by the US, including allegations of a trade surplus, unfair trade practices, and lack of reciprocity.
In light of the developments, the President has also called on South African trade negotiators and businesses to intensify diversification efforts to strengthen the country’s resilience in global trade and supply chains.
“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States,” the Presidency concluded.
