Mashatile concerned about US tariffs, says consumers likely to be punished for global trade wars

JOHANNESBURG - Deputy President Paul Mashatile has said that consumers are likely to be punished for the global trade wars as global leaders retaliate against the harsh tariffs imposed by the United States of America.

Last week, the US President Donald Trump imposed unprecedented import tariffs on all goods coming into the country.

This includes a 10 percent baseline for some countries, while South Africa and other countries face higher duties.

While there are products exempt from the hefty taxes, the move is expected to shift global trade.

The sweeping tariffs announced by Trump only added to growing economic uncertainty since his return to office in January.

The global trade wars caused world markets to crash, with Asian markets leading the rout at the start of the week as investors looked to hedge their bets on safer assets.

Since last week’s decision by Trump, trillions of dollars have been wiped off stocks.

South Africa hasn’t been spared, with the JSE bleeding and the rand weakening by about a rand in a week.

Deputy President Paul Mashatile said: "We are concerned about that because it makes South African exports to the US more expensive for the US people and it affects the profitability of our companies."

The threats of retaliation by some of the hardest hit economies have sparked concerns of a global recession.