Credited from: AFRICANEWS
South African President Cyril Ramaphosa has denounced the Trump administration's decision to impose a 30% reciprocal tariff on South African imports, calling it a "unilateral imposition." This tariff is set to take effect on August 1, 2025, a move President Trump justifies by claiming that the U.S. trade relationship with South Africa has been "far from reciprocal." Ramaphosa contested this assertion, highlighting that the average tariff rate on imported goods into South Africa is only 7.6% and emphasizing that significantly more than half of the U.S. goods enter South Africa duty-free, according to Newsweek and BBC.
In a detailed response, Ramaphosa argued that the figures presented by Trump's administration do not reflect the reality of trade data. He stated, "This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States." Furthermore, he emphasized that over half of South African imports from the U.S. are untaxed, reinforcing his position against the tariff, according to Africanews.
President Trump, in his correspondence with Ramaphosa, suggested the tariff could be adjusted depending on South Africa's response to U.S. trade policies. He expressed the intent to shift longstanding trade deficits, urging South Africa to eliminate its tariffs and trade barriers for a re-evaluation of the imposed rates. However, Ramaphosa maintained that South Africa would pursue diplomatic negotiations aiming for a "more balanced and mutually beneficial trade relationship" with the U.S., according to BBC and Africanews.
The ramifications of this tariff decision are significant considering the U.S. holds the position of being South Africa's second-largest trading partner, impacting various sectors including agriculture and automobiles, which previously benefited from duty-free access to the U.S. market. Ramaphosa's administration views the new tariffs as detrimental to economic relations while emphasizing the need for resilience and diversification within South Africa's economy against such international pressures, according to Newsweek, BBC, and Africanews.