ANC unfazed by US sanction threat about BBBEE

South Africa will not be dictated to about internal policies, even if it means settling for a less amicable trade arrangement with the United States, ANC secretary-general Fikile Mbalula has said on the morning American tariffs were implemented on local exports to the US.

Referring to recent attempts by the Government of National Unity (GNU) to avoid new tariffs of 30% being levied on certain goods, he said the Trump administration seemed intent on not engaging honestly.

Going one step further, Mbalula accused the Trump administration of trying to coerce the government into “things that are anti-transformation”.

He said this in respect of information coming out of the GNU’s trade delegation to the US in May, where it was confirmed that Washington was opposed to South Africa’s ongoing use of broad-based black economic empowerment (BBBEE) practices in the business environment.

At the time of the delegation visiting the White House in a bid to avoid ‘Trump tariffs’, it emerged that Washington would be pressuring the GNU to relax BBBEE barriers to entry to companies such as satellite connectivity provider Starlink.

Disagreement with the Trump administration over black business ownership requirements in South Africa also comes in the wake of US Senator Ronny Jackson’s introduction of a Bill aimed at punishing South Africa for certain policies.

The Bill is officially titled the US-South Africa Bilateral Relations Review Act of 2025, mandating a comprehensive review of the bilateral relationship between the US and South Africa.

More importantly, it seeks to identify South African government officials and ANC leaders who may be subject to targeted sanctions.

The sanctions could be imposed under the Global Magnitsky Act for corruption and human rights abuses.

Given that trade negotiations between SA and the US failed to avoid new duties that Washington regularly refers to as “reciprocal tariffs”, Mbalula said the largest party in the GNU was not fazed.

He said BBBEE was here to stay and the government would not be dictated to about its transformation targets.

“If it means we’re going to suffer through sanctions as leaders of the ANC, let it be.

“We’ll never beg imperialists.”

At the same time, Mbalula acknowledged that the tariffs were going to have a negative impact on South Africa’s economy.