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South Africa s says it is negotiating for a maximum tariff rate of 10 percent from Washington as a worst-case scenario
The country has asked the US for an extension on a looming tariff deadline, as the two countries continue negotiating a trade agreement. Relations have been strained between Pretoria and Washington since US President Donald Trump took office in January.
The South African Department of Trade, Industry and Competition (DTIC) announced the move on Tuesday, ahead of a July 9 deadline when a 31 percent tariff on South African exports to the American market is set to take effect.
The duty forms part of the global “reciprocal tariffs” announced by Trump in April, aimed at countering what he described as foreign nations exploiting the openness of the US market and “ripping off” the American people. Implementation of the measure was paused for 90 days to allow for negotiations.
Earlier, South African President Cyril Ramaphosa described the measure as “punitive tariffs,” arguing that they “serve as a barrier to trade and shared prosperity.”
In a statement on Tuesday, the DTIC said its officials had met with US Assistant Trade Representative for Africa Connie Hamilton and reiterated calls for an extension of the 90-day deadline to allow Pretoria and other African governments to prepare their proposed deals in line with a new trade framework.
According to the ministry, President Ramaphosa first presented the proposed framework at a meeting with Donald Trump at the White House in May. During the visit, Trump confronted him over claims of “genocide” against white farmers – an allegation that prompted the US president to halt all federal funding to South Africa and expel the country’s ambassador to Washington, accusing him of being “anti-American.”
Pretoria hopes to reach an agreement that would exempt key exports such as vehicles, auto parts, steel and aluminum from the tariff hike. In exchange, the country has offered to import liquefied natural gas from the US, the DTIC stated.
“South Africa is also seeking the maximum tariff application of 10 percent, as a worst-case situation,” it added.
Trade Minister Parks Tau has urged domestic industries to “exercise strategic patience and not take decisions in haste,” adding that the government would “use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market.”
Pretoria is the largest beneficiary of Washington’s flagship African Growth and Opportunity Act (AGOA), which grants eligible sub-Saharan African countries duty-free access to the US market. After China, the US is South Africa’s second-largest bilateral trading partner. The citrus industry – one of the country’s key agricultural export sectors – could lose up to 35 000 jobs if the tariffs are implemented, officials have warned. – Reuters
