The Select Committee on Economic Development and Trade expressed concerns that with the response from the Brazil, Russia, India, China, South Africa, or Brics, grouping to US President Donald Trump's threats concerning development of a common Brics currency appearing uncoordinated, this could potentially impact on trade relations, leaving many disadvantaged.

On Monday, South Africa’s government said there were no plans to create such a so-called Brics currency, after Trump threatened to impose 100% tariffs on members of the economic bloc that back the creation of an alternative to the US dollar.

In a statement, the Department of International Relations and Cooperation pointed to the recent misreporting that had led to the incorrect narrative that Brics was planning to create a new currency.

It stated that, instead, discussions within Brics focused on trading among member countries using their own national currencies.

Committee chairperson Sonja Boshoff highlighted that South Africa and the US need each other as trade partners, and “under no circumstances” should either side entertain the idea of severing ties.

Boshoff emphasised that the longstanding relationship between the two countries had been characterised by “cordiality, decency and mutual respect”.

“These principles should remain the foundation of our trade relations with the US. Such a foundation will ensure that South Africa–US trade can withstand any diplomatic challenges or tensions that may arise,” she said.

Boshoff pointed to the US as a reliable trade partner and South Africa's status as a gateway to African markets.

“South Africa is a major beneficiary of the African Growth and Opportunity Act and many exchange programmes in education, innovation, and technology. These relations must endure, bringing mutual benefits to the people of both our countries,” she said.