South Africa has announced its intention to seek a new trade deal with the United States following a significant tariff hike.
South Africa’s exports to the United States totals over $2 billion annually and could be hit negatively by the new tariff. South Africa major exports to the US include vehicles, car parts, and various manufactured goods.
US President Donald Trump unveiled global reciprocal tariffs on most goods imported to the United States on Wednesday, April 3 and imposed a 30% reciprocal tariff on South African goods, on top of the existing 25% tariffs on vehicles and car parts. The move means that South African exporters now face a combined tariff rate of 55%.
Responding to the new tariff hikes, the South African presidency released a statement on Thursday, April 3, saying, “The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S. as an essential step to secure long-term trade certainty.
“Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity.”
