In formal communication with President Ramaphosa yesterday, United States President Donald Trump announced that a harsh 30% tariff on all South African exports to the US is set to be imposed from 01 August.
It goes without saying the devastating consequences this will have on our fragile, stagnant economy. It risks billions in trade revenue, threatens tens of thousands of current jobs, and threatens to plunge investor sentiment even further into the red.
The United States is one of South Africa’s most important trade partners. Punitive tariffs of this scale would cripple key export sectors including automotive, agriculture, steel, and mining. These sectors are all vital contributors to job creation and GDP growth.
What is clear is that the South African government does not have a strategy on diplomacy and international relations. The GNU needs to formulate and adopt one, otherwise the bipolar approach to our dealings with other countries will remain.
Once that is in place, Ramaphosa should swiftly appoint a credible, empowered and respected Ambassador to Washington. This individual would be someone who can rebuild trust, restore constructive dialogue, and protect South Africa’s economic interests.
We reject any approach by foreign countries that seeks to treat South Africa as a client state. While global superpowers may attempt to pressure us to realign our domestic or foreign policy positions, South Africa’s actions must always be anchored in our democratic values, national interest and constitutional sovereignty.
We must also recognise the leverage we possess. Over 500 000 US jobs are directly tied to trade with South Africa. That is a powerful bargaining chip which the government must not be afraid to use.
It is in this light that President Ramaphosa would be well advised to prioritise the immediate appointment of a seasoned Ambassador to the US, with a clear economic and diplomatic mandate that furthers the needs of citizens.
Moreover, a full economic risk assessment of the proposed tariffs and their impact on local industries and jobs needs to be conducted with urgency. This would assist in damage control and provide insights into how we approach the negotiating table with the US authorities.
At a time when our economy is on its knees, we cannot afford to lose another rand in trade or another job. Acting fast is mission critical in such economically perilous times.
Media Enquiries:
Roger Solomons – BOSA Spokesperson – 072 299 3551