The Democratic Alliance (DA) said on Friday that it is disappointed with Trade, Industry and Competition Minister Parks Tau and Minister of International Relations and Cooperation Ronald Lamola for failing to secure a trade deal with the US, as an executive order from the White House on Thursday made clear that US-imposed tariffs are now a certainty, to be levied on South African goods and produce from August 7.

Earlier this month, US President Donald Trump informed South Africa of his intention to impose a 30% tariff on South African products exported to the US, separate from sectoral tariffs, from Friday.

South Africa was among several countries to receive letters from Trump, setting out planned tariffs to take effect from Friday.

Trump initially announced a tariff on South African exports to the US in April but then agreed to a three-month delay to discuss trade relations with its trading partners.

South Africa has since been scrambling to secure a trade deal with Trump, with the most recent reports that Lamola was in Washington to ensure this.

The DA believes the "no deal" scenario is owing to negligence, failed diplomacy and ineptitude.

“The SA negotiators missed their first deadline to submit trade terms to the US, and after missing the deadline were forced to ask for an extension,” the DA claimed.

The party noted that with the confirmation of the tariff, Tau had no contingency plan.

“Last night he offered up a laughable ‘help desk’ for fearful exporters to telephone, instead of any tangible trade solutions. The context of South Africa’s US trade deal failure is that across the globe Minister Tau is neglecting our country’s trade representatives. Vacancies for SA trade representatives in 30 countries abroad show that Minister Tau is asleep at the wheel,” the DA stated.

Meanwhile, President Cyril Ramaphosa said South Africa would continue negotiating with the US, stating that South Africa’s negotiators were “ready” pending invitation from the US.

“In the meantime, government is finalising a package to support companies that are vulnerable to the reciprocal tariffs. The package consists of several measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. The details of the measures will be announced in due course,” he said.

Government has also submitted a framework deal to the US that aims to enhance mutually beneficial trade and investment relations.

NEGOTIATIONS CONTINUE

Ramaphosa pointed out that South Africa would continue to pursue all diplomatic efforts to safeguard its national interests. 

“To this end, government will intensify its diversification strategy to create resilience of our economy and is working with export councils and industry associations, as well as top exporters to the US with a view to assist with alternative markets. In this regard, an Export Support Desk to provide updates on development and provide advisory services to exporters has been established. The details are to be published by the Department of Trade, Industry and Competition (dtic) on its website,” he said.

However, the DA rather wants the Government of National Unity to move economic policy away from black economic empowerment towards stronger equity equivalence models to ensure that local communities benefit from investment and not political officials.

The DA vowed to use its role in national and provincial government to negotiate trade alternatives, and said its members in Parliament will bring “unrelenting pressure” on the dtic and Department of International Relations and Cooperation to “correct their wrongs”.

The DA said it strongly supported the efforts of Agriculture Minister John Steenhuisen to seek out and secure diverse alternative markets for South Africa’s agricultural exporters.

The party also believes South Africa needs a new Ambassador to the US.

“This demands the urgent appointment of a career diplomat, and certainly not another ANC cadre,” it said.

The Trump administration denied Mcebisi Jonas a diplomatic visa in May, informing South Africa’s government that it had formally rejected his credentials, and he wouldn’t be recognised as an official interlocutor.

Meanwhile, trade union Solidarity said in light of the failed trade deal, it would send a framework for a trade agreement between South Africa and the US to Ramaphosa and Trump.

Solidarity chief executive Dr Dirk Hermann noted that the White House had indicated that the tariffs may be reconsidered if a trade agreement between the two countries could be reached, highlighting that the proposed framework would demonstrate that such an agreement was indeed feasible.

Solidarity called on other South African trade unions to add pressure on government to create the necessary conditions for concluding a trade agreement.