Ramaphosa responds to Trump’s 30% tariff

South Africa will continue negotiating for a more mutually beneficial trade relationship with the United States and has welcomed its commitment that President Donald Trump’s 30% tariff announced on Monday is subject to modification.

This was the response of President Cyril Ramaphosa to Trump’s correspondence regarding his much-awaited tariff decision.

Ramaphosa’s spokesperson, Vincent Magwenya, said in a statement late on Monday night that the president had noted the correspondence from Trump on the unilateral imposition of a 30% trade tariff against South Africa and that it was one of several countries to have received this communication on 7 July.

He said the 30% tariff was based on a particular interpretation of the balance of trade between South Africa and the United States.

“This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States. Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” Magwenya said.

“In our interpretation of the available trade data, the average tariff of imported goods entering South Africa stands at 7.6%. Importantly, 56% of goods enter South Africa at 0% most-favoured-nation tariff, with 77% of US goods entering the South African market under the 0% duty.

“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States. We welcome the commitment by the US government that the 30% tariff is subject to modification at the back of the conclusion of our negotiations with the United States.”

Magwenya said the country had continued to engage the United States, most recently at a meeting held on the sidelines of the US-Africa Summit on 23 June in Luanda.

"It was at this meeting where South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade. The South African negotiating team still awaits this template.

“However, President Ramaphosa has instructed the team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May.” Magwenya said.

He said the framework deal addressed the issues initially raised by the US, including South Africa’s “supposed trade surplus, unfair trade practices and lack of reciprocity”.

“The President urges government trade negotiations teams and South African companies to accelerate their diversification efforts in order to promote better resilience in both global supply chains and the South African economy.”