Online Reporter
President Donald Trump followed through on his April threats and hit South Africa with 30 percent tariffs “on any and all South African products sent into the United States” on Monday.
Trump confirmed the move in an official White House letter to President Cyril Ramaphosa (which was also posted on his Truth Social platform and noted that the tariffs will come into effect as of 1 August but are “separate from all Sectoral Tariffs”.
He hinted that a new trade deal could be reached before August, adding: “There will be no tariff if South Africa, or companies within your country, decide to build or manufacture product(s) within the United States … In fact, we will do everything possible to get approvals quickly, professionally, and routinely, in other words, in a matter of weeks.”
In the letter, Trump recognised “the strength and commitment” of trade relations between both nations, highlighting “the fact that the US has agreed to continue working with South Africa despite having a significant Trade Deficit with your great Country.”He said it was time “to move forward… but only with more balanced and fair trade”.
“Our relationship has been, unfortunately, far from reciprocal. Goods transshipped to evade a higher tariff will be subject to that higher Tariff. Please understand that the 30 percent number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” he added.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 30 percent that we charge,” warned Trump. “Please understand that these tariffs are necessary to correct the many years of South Africa’s tariff and non-tariff policies and trade barriers, causing these unsustainable Trade Deficits against the United States. — Bloomberg
