The Reserve Bank believes US tariffs will only have a modest impact on South Africa's economic growth while leaving its inflation levels broadly unchanged, governor Lesetja Kganyago said on Friday.
US imports from South Africa are now subject to a 30 duty the highest rate in Sub-Saharan Africa after Pretoria failed to agree a trade deal with Washington in time for US President Donald Trump's deadline. President Cyril Ramaphosa spoke to Trump on Wednesday to try to speed up trade talks after industry associations and the central bank governor previously warned the tariffs could cause tens of thousands of job losses.
But at the Reserve Bank's AGM on Friday, Kganyago downplayed the economic fallout.
Our preliminary assessment is that tariffs and the other uncertainties in the global economy are causing modest damage to growth while leaving inflation broadly unchanged, he told the bank's shareholders.
The US is a large trading partner for South Africa, but it is not as important as Europe, China or the Sadc, Kganyago added.