While the clock is ticking towards the August 1 deadline to potentially avoid tariff increases on South African exports sent to the United States, no information has been forthcoming from the Government of National Unity GNU about its negotiations with the Trump administration.
Although its fair to say that negotiations are probably at a sensitive stage, a potential increase of 30 on certain manufactured goods is ten days away.
Yet exporters and their freight forwarding agents are none the wiser as to what the GNU and the Department of Trade, Industry and Competition are doing to avoid incoming tariff increases that could severely impact local manufacturing concerns and US-bound shipments.
We have received no communication from the government, said Terry Gale, chairperson of the Exporters Western Cape EWC.
We have written to Vincent Magwenya spokesperson in President Cyril Ramaphosas office but he hasnt replied. Meanwhile, we have a looming crisis.
The impact Trump tariffs could have, particularly on the agricultural and automotive sectors, has been well reported, especially how fruit exports tailored for the US market could devastate the town of Citrusdal.
Representing roughly 14 of South Africas annual global exports, Citrusdal employs about 5 000 of the countrys 35 000 labourers who face direct impact from proposed US tariffs.
Yet, there are various other export products that face serious fallout if the government fails to prevent Trump tariffs.
Olive oil from Worcester, an eco-friendly paper packaging plant in Cape Town, and high-end doors and windows from a company headquartered in Moorreesburg, all face serious business setbacks if the tariffs arent avoided.
Gale said the managing director of the doors and windows manufacturer was currently in the States trying to avoid the worst.
They simply cant lose the US the market as there are too many jobs at stake, he said, especially in the Atlantis area where the companys manufacturing plant is located.
As for the packaging plant, he said: They secured a major contract in the US last year and now they have this to deal with.
I dont know what the government is thinking. Surely they can see how bad this will be for our economy?
As for his own business, Gale Lotheringen Freight Consultants, he said at least 18 years of business relied on continued trade with the US, which remained supported by direct sailings to Americas East Coast.
And yet it doesnt seem as if its serious enough for the government, at least thats what it looks like if one considers that we have no information at all about what theyre doing to avoid this crisis.
Gale said he didnt understand why the Minister of Trade Industry and Competition, Parks Tau, had to visit China last week, along with Deputy President Paul Mashatile.
We have no issue with China at the moment. Could he not have sent a director general? We need him to help us with the US and not with China. We need our president on an aeroplane to the US to go cap in hand to Trump, asking what we can do to avoid the tariffs.
In a bid to get an update from government about the US tariff situation, the EWC will host Agriculture Minister John Steenhuisen at the Cape Town International Convention Centre on Tuesday night, July 22.
Shortly before this article was posted, Dr Francois de Wet, managing director of Cape Karoo International, which represents about 300 ostrich farms sending leather and related agri products to the US, said they hadnt heard from the government about the incoming tariffs.
He recently said that although 80 of South Africas ostrich products went to Europe and markets out east, about R200 million in revenue was generated annually through mainly ostrich leather sent to the US for exclusive footwear production.
To find out more about the EWC event, email: noreenewc.org.za
Questions were sent to The Presidency, specifically Vincent Magwenya, but no feedback about the governments trade negotiations with the US has been received yet.