By Lehlohonolo Lehana.
Minister of Trade and Industry (Dtic) Parks Tau is expected to make an announcement tomorrow on the reciprocal US tariffs, which will come into effect in the next few days.
Tau will be joined by the Minister of International Relations (Dirco) Ronald Lamola.
Its still not clear if the announcement will be based on the outcome to its trade proposals to US President Donald Trump’s administration or he is going to outline the draft on emergency measures to support local exporters affected by the tariffs.
While the establishment of the Export Support Desk has been welcomed by some stakeholders, political opponents questioned its adequacy.
Fullview has attempted to reach out to the ministry but to no avail.
Trump’s newly imposed 30% tariff; a policy shift expected to severely impact the country’s automotive and agricultural sectors.
The tariff is expected to take effect on August 7, as announced by the Trump administration on Thursday.
South Africa is the only country from sub-Saharan Africa singled out in the announcement, reflecting the US’s strained relationship with Pretoria.
Other African nations, including Lesotho and Zimbabwe, have been hit with a 15% tariff, which will also come into effect in seven days.
The decision is a huge blow to South Africa, and comes despite trying to agree a trade deal with the US, which included buying US liquefied natural gas, simplifying rules for poultry imports and investing in US industries like mining.
Last week, Tau said South Africa signed a condition precedent document with a US trade representative and was awaiting a template from Washington to make further input.
As part of its proposed deal, South Africa said it was prepared to import as much as 100 petajoules of liquefied natural gas for 10 years from the US, which would generate $12 billion for American firms, and invest $3.3 billion in US industries such as mining and metals recycling.
In return, it asked for specific sectors such as ship building and counter-seasonal agriculture products to be excluded from reciprocal tariffs.
On Saturday, ANC NEC member Dr Kgosientsho Ramokgopa told journalists that there had been a focused discussion on the US tariffs, describing it as “spirited and robust”.
Ramokgopa said the negotiations between South Africa and the US were ongoing, adding that both countries would be able to find each other.
The United States is South Africa’s second-largest bilateral trading partner after China, importing a wide range of goods including automobiles, iron and steel, citrus fruits, and wine.
However, rising diplomatic tensions, fueled by disagreements over South Africa’s foreign policy positions and domestic affirmative action laws, which the Trump administration has openly criticised, have clouded the trade relationship.