South African officials announced Friday they would not immediately retaliate against new tariffs imposed by the United States.
President Donald Trump this week levied a 31% tariff on U.S. imports from South Africa.
This came alongside a broader 10% baseline tariff on all imports and higher duties on numerous nations.
Trade Minister Parks Tau stated that imposing reciprocal tariffs without understanding the U.S.’s reasoning would be counterproductive.
He noted South Africa’s average import tariff stands at 7.6%.
Foreign Affairs Minister Ronald Lamola lamented that Trump’s tariffs effectively negate benefits from the African Growth and Opportunity Act.
The AGOA initiative, granting duty-free U.S. market access to qualifying African countries, is set to expire in September.
The U.S. actions highlight South Africa’s need to diversify its export markets toward Asia and the Middle East.
The government intends to support affected industries like car manufacturing and agriculture.
South Africa will not remove benefits enjoyed by U.S. carmakers under its Automotive Production Development Programme.
The National Treasury estimates losing AGOA status could reduce economic growth by under 0.1 percentage points.
The central bank’s models suggest impacts ranging from under 0.1% to 0.7%, depending on trade barriers and market sentiment.
Trump’s recent tariffs add to the existing 25% tariff on vehicle and auto part imports, a significant threat to South Africa’s over $2 billion in annual exports.
