Business Unity South Africa BUSA has sounded the alarm on the potential repercussions for South African industries in the wake of sweeping import tariffs imposed by the United States government, Cape town Etc reports.
With proposals for reciprocal duties targeting countries like South Africa that maintain trade surpluses, BUSA advocates for a coordinated national response to safeguard the country's economic interests.
Countries such as the UK, Japan, and South Korea, as well as numerous regional entities like the European Union, have successfully negotiated reductions in earlier proposed tariffs, demonstrating that a path exists for South Africa to follow suit.
The US remains a cornerstone in South Africas trade landscape, with the African Growth and Opportunity Act AGOA significantly bolstering exports for over two decades. However, the current political landscape threatens this vital relationship at a time when local industries are already grappling with economic uncertainties.
The automotive sector stands as a prime example of the impending fallout. As South Africa reels from the imposition of 25 Section 232 tariffs, the potential of a 30 additional tariff could escalate total duties to an alarming 55.