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South Africa Seeks Extension for Trade Deal Amid Trump Tariffs

Published 7 hours ago3 minute read

South Africa is actively working to secure additional time for crucial trade negotiations with U.S. President Donald Trump’s administration, aiming to prevent the imposition of higher tariffs scheduled to take effect on July 9. Pretoria’s trade ministry announced these efforts, emphasizing the nation’s determination to protect its vital exports. President Trump had initially imposed a 31% tax on U.S. imports from South Africa in April as part of his global “reciprocal” tariffs. However, he then provided a 90-day reprieve, pausing the application of these tariffs to facilitate negotiations.

The primary objective for South Africa in these ongoing talks is to secure a comprehensive trade deal that would exempt some of its most critical exports from these duties. These key exports include autos, auto parts, steel, and aluminum, as well as significant volumes of agricultural products, particularly citrus. As a strategic incentive, South Africa has offered to purchase liquefied natural gas (LNG) from the United States in return. Furthermore, as a contingency measure, the Department of Trade, Industry and Competition stated that South Africa is also advocating for a maximum tariff application of 10% as a worst-case scenario, should full exemption prove unattainable.

In a recent development, South African officials met with Assistant U.S. Trade Representative for Africa, Connie Hamilton, in Luanda last week. During this meeting, they were informed that the U.S. is currently in the process of developing a new template to guide its future trade engagements with African nations. In light of this, South Africa, along with other African countries, has strongly advocated for an extension of the original 90-day deadline. This extension would provide countries with sufficient time to prepare their proposed deals in accordance with the newly emerging U.S. template.

The approaching July 9 deadline is critical, as the potential impact of these looming tariffs on South Africa is stark. The United States holds significant economic importance for South Africa, standing as its second-largest bilateral trading partner, trailing only China. If the higher tariffs are indeed implemented, South Africa faces the devastating prospect of losing approximately 35,000 jobs in its citrus industry alone, a substantial blow to a key agricultural sector and overall economy.

The foundation for this proposed trade deal was laid during South African President Cyril Ramaphosa’s visit to the White House in May. While the visit notably began with President Trump controversially confronting Ramaphosa with what were widely described as “false claims of a ‘genocide’ against whites in South Africa,” Ramaphosa later indicated that constructive discussions had followed this challenging start. Trade Minister Parks Tau has urged South African industry to “exercise strategic patience” and avoid hasty decisions, assuring that the government will continue to utilize every available avenue to engage with the U.S. government to find amicable solutions. Meanwhile, the U.S. Trade Representative’s office has remained silent, offering no immediate response to requests for comment on the ongoing negotiations, adding to the urgency as the deadline draws near.

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