National employer federation the Steel and Engineering Industries Federation of Southern Africa (Seifsa) has expressed concern over recent comments by US President Donald Trump against South Africa and the impact this will have on the metals and engineering sector.

“While we will have to get used to the idea that President Trump will continue to use social media and all other channels to give effect to his views and policies, what is undeniable is that, by virtue of the sheer economic size of the US, what is said will have an impact on the metals and engineering sector,” Seifsa warns.

A recent snap internal survey of member companies on the early-stage implications of these developments has revealed some warning signs, the entity informs.  

It mentions the US market as an important export area for highly specialised engineering products from South Africa, as well as a considerable domestic reliance on US-based software systems used in the running of operations.

Seifsa highlights the importance of business leaders of multinationals and owner managed local companies allaying fears and reassuring foreign investors that South Africa remains a safe haven for business.

It has also urged government to be deliberate and decisive in cementing its position on policy certainty, with the Government of National Unity to demonstrate its commitment to stable, consistent policies around land, ownership, transformation and fiscal prudence.

“Consistent, deliberate messaging and actions, both domestically and internationally, is what is now needed to counter the narrative that we are bordering on a failed State status. Business too has an important role to play, to be the ambassadors of a vision of a reimagined South Africa full of hope and promise,” Seifsa averred.

In the interim, Seifsa expects a frayed relationship with the US.

In anticipation of a constrictional cycle over the next six months, businesses would have to reevaluate their risk and mitigation measures, Seifsa said.