With the threat of 30% tariffs on South African exports to the US looming from August 1, President Cyril Ramaphosa has assured that discussions with the US are ongoing and expressed optimism about the outcome of these engagements.

Speaking on the sidelines of his visit to BMW Group South Africa in Tshwane, Ramaphosa also acknowledged the Bill recently approved by the US House of Representatives Foreign Affairs Committee that seeks a full review of the bilateral relationship between the US and South Africa and also seeks to identify South African government officials and African National Congress leaders that are “eligible for the imposition of sanctions”.

Ramaphosa said discussions between both countries would continue as the Bill process unfolded in the US, adding that he was unsure as to the reason for the Bill. 

“Our bilateral dealings and engagements with the United States will continue and we will talk about all manner of things, including precisely this issue and many others. We’ve got good diplomatic relations with the United States and we want to enrich them and make them better. We are very positive that the outcomes of our engagement with the United States will be comprehensive and all-encompassing so that we can return to good dealings with the United States,” said Ramaphosa.

He said the global tariffs threatened by US President Donald Trump have “turned the world upside down”, and he acknowledged the specific threat to South Africa, as a major exporter to the US in automotive, agricultural and minerals products.

He said local producers were already feeling the imminent pressure.

“We are engaging with the US, we are in discussions with them. My visit to the US was to open that door for engagement and that is precisely what are doing now. We are talking to them, they are talking to us and we are exchanging a whole lot of ideas and proposals and I am hoping those negotiations will bear fruit in the coming days. Time, obviously, is of the essence in so far as this is concerned,” Ramaphosa said.

However, he added that South Africa should be looking at other markets, specifically referencing the African Continental Free Trade Area (AfCFTA), describing it as a “very progressive”, “very positive tariff-free opportunity”.

He said South Africa should ramp up AfCFTA exports but that it should also look at markets outside of Africa.

“So as people see us moving from country to country, hopping on and off planes, we are searching and looking for markets for our products so that we can employ more people, we can grow our economy. And our economy is an economy that is also driven by exports. Of course the internal market is important to us. But the export market is where we bring in hard currency that enables us to be at the top of manufacturing and industrialisation. That’s where we want to be,” said Ramaphosa.