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South Africa can still escape the pain that the US’s 30% trade tariff will bring upon its economy, provided President Cyril Ramaphosa takes urgent action.

This, according to Jaco Kleynhans, head of public relations at Solidarity, after US President Donald Trump informed South Africa in writing that the 30% trade tariff would come into effect on 1 August.

“There is still room for negotiation until 1 August, but the problem is that our government and Ramaphosa are always dragging their feet on this. The Americans wanted to negotiate, so the situation could still be resolved.”

“However, one must consider that America is also seeking a political settlement with South Africa and not just an economic settlement,” says Kleynhans.

He agrees with Dr Dirk Hermann, CEO of Solidarity, who said the South African government had every opportunity to conclude a positive trade agreement with the USA.

Hermann says the SA government has failed the country and its people, and their ideological narrow-mindedness and political arrogance will cost ordinary people their jobs.

“They never listened to what their most important trading partner wanted and did not show understanding for our dependence on American trade.”

“Their tone deafness is costing the country jobs. 30% is not just a percentage – it is people’s homes, jobs and income for their families,” says Hermann.

According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), it is telling that other countries were able to successfully negotiate to escape similar tariffs while South Africa is subjected to them.

“If we want to maintain any competitive advantage, this must be urgently rectified. Cyril Ramaphosa must engage with the Trump administration to get out of the 30% tariff.”

“If this tariff is applied to everything, it would also be the de facto termination of the AGOA trade agreement. Solidarity has worked hard and held many discussions over the past few years to keep South Africa part of AGOA.”

“To see it come to nothing is sad,” says Du Buisson.

Issued by Solidarity