South Africa is preparing to diversify its export markets in response to the looming 30 tariff imposed by the US, which government officials say will cost jobs and shave 0.2 off economic growth.
The country is one of several facing punitive tariffs from the US as it moves to protect its own manufacturers and labour force. President Donald Trump announced the tariffs in April but delayed them for 90 days to allow countries to negotiate better deals. In July, he confirmed that they would take effect on 1 August. This has now been pushed back seven days.
The 30 tariff set by the US is unfortunate and presents a setback in resetting bilateral trade, International Relations and Cooperation Minister Ronald Lamola told a media briefing on Monday.
We have been strengthening trade and investment partnerships with various trade partners. These efforts are bearing fruit, targeting markets across Africa, as well as in Asia, Europe, Middle East and the Americas.
Affected sectors include agriculture , automotive and textile all of which have benefited from duty-free access under the African Growth and Opportunity Act Agoa. The government has said it will not retaliate against the US but has acknowledged the urgent need for the country to diversify its export market.