Trade and Industry Minister takes muted approach to higher tariffs by US against global trade partners

JOHANNESBURG - Trade and Industry Minister Parks Tau has taken a more muted approach to the higher-than-anticipated tariffs implemented by the United States (US) against global trade partners.

US President Donald Trump announced sweeping Liberation Day tariffs on Wednesday, imposing a 10% base tariff on some countries and higher tariffs on countries with a trade deficit with the super power.

Some friends and foes of the US have not taken kindly to the move that is feared to further destabilise the global economy.

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Speaking on the sidelines of the Gauteng Investment Conference in Johannesburg on Thursday, Tau gave a measured response.

Already battling to come to terms with the likelihood of higher domestic taxes through a value-added tax (VAT) increase, South Africa now also has higher export duties to worry about.

The country is among a list of those slapped with tariffs higher than the baseline totalling about 30%.

But some mining commodities like gold, platinum group metals, copper and zinc are among products exempt.

In what some have described as aggression by the US, Tau says cool heads are needed to manage the situation.

“I don’t think we should take a posture about retaliatory approach. I think we should take a posture that continues to engage with the us, a posture that continues to engage with trade partners on how we engage on a way forward.”

Earlier this week, South Africa trade officials announced they would seek a meeting with Washington after the u-s signed a proclamation to impose a 25% import tariff on car and car parts from its trade partners.