U.S. President Donald Trump has announced that South African products exported to the US will face a 30% tariff from 7 August.
Of all sub-Saharan African nations, South Africa is the only country in the announcement, and this sends a clear message of Trump’s strained relationship with Cyril Ramaphosa’s nation.
Some African nations, including Lesotho and Zimbabwe, have been hit with a 15% tariff, set to take effect in a week.
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Trump’s decision is a huge blow to South Africa, as the US is its second-biggest trading partner.
Under the African Growth and Opportunity Act (AGOA), South Africa’s automobile, farming and textile sectors had enjoyed duty-free access to the US market, per the BBC.
President Ramaphosa’s government had reportedly been trying to agree a trade deal with the US, which included buying US liquefied natural gas, simplifying rules for US poultry imports and investing $3.3bn (£2.5bn) in US industries like mining, ahead of the August 1 deadline set by Trump.
To Trump, introducing tariffs will protect American businesses from foreign competition and also boost home-made manufacturing and jobs.
Ramaphosa has reacted to the news, saying that his administration would “continue negotiating with the US” and had “submitted a framework deal” to its US counterpart, according to the BBC.
“In the meantime, the government is finalising a package to support companies that are vulnerable to the reciprocal tariffs.”
Since Trump returned to office in January as President, US-South Africa relations have hit rock bottom.
Donald Trump has stopped all aid to South Africa and accuses the nation of discriminating against the white minority, though Ramaphosa’s government has denied this time without number.
Back in May, Ramaphosa held talks with Trump in a bid to mend the relationship between the two nations, but this failed to make any headway.
Only days ago, Trump revealed that he would “maybe send someone else” to the G20 Leaders Summit set to take place later this year in Johannesburg.
“I’ve had a lot of problems with South Africa. They have some very bad policies,” he said.
