Online Reporter
Pretoria’s Department of Trade, Industry and Competition confirmed on Tuesday that South Africa has formally requested more time to finalize a trade agreement before the 31 percent tariff on US imports from South Africa takes full effect.
According to a statement from South Africa’s Department of Trade, Industry and Competition, the country is pushing for a worst-case tariff cap of 10 percent as negotiations with the United States continue.
Reuters reports that South African officials recently met with Assistant US Trade Representative for Africa, Connie Hamilton, in Luanda, where they were informed that Washington is developing a standardised template for its trade engagements with African nations.
“In view of this development . . . African countries, including South Africa, have advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals in accordance with the new template,” the department said.
Recall that US President Donald Trump issued a decree imposing tariffs that range from 10 percent for countries such as Kenya, Ghana, and Ethiopia, to as high as 30 percent for South Africa and 50 percent for Lesotho, as part of his administration’s broader recalibration of trade relations with Africa.
The tariff, initially announced in April as part of Trump’s broader “reciprocal trade” policy, was temporarily paused for 90 days to allow room for negotiations.
However, with the grace period nearing its end, pressure is mounting on both sides to reach a compromise that preserves South Africa’s preferential access to the US market under frameworks like the African Growth and Opportunity Act (AGOA).
Ramaphosa’s administration argues that the tariffs disproportionately harm South African manufacturers and exporters, many of whom rely on the US as a key market. — Business Insider Africa
