Ramaphosa maintains US 30% tariff hike inaccurate representation of trade between US and SA

JOHANNESBURG - As the United States (US) slaps South Africa with a 30% tariff hike, President Cyril Ramaphosa maintains that the figure isn't an accurate representation of trade between the two countries.

Ramaphosa, in response to a letter from US President Donald Trump, said American goods enter the South African market under the 0% duty, which is against other countries that are charged 7.6%.

Trump, in hiking up the import duties into his country, insists it's a move towards creating balance and fair trade.

It's almost been 90 days since he halted his desired changes to the tariff rates as he negotiated deals with countries around the globe.

Trump believes there's a major trade deficit disparity, with the relationship between the pair being far from reciprocal.

Ramaphosa said available data shows otherwise.

His spokesperson, Vincent Magwenya, said, “This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States. Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data.”

While the tariff rates don't just apply to South Africa, the country's also been trying to mend relations with the US, which hit an all-time low earlier this year.

Ramaphosa said Pretoria would continue with its diplomatic efforts towards a more balanced trade relationship with America, while urging trade negotiation teams here at home to speed up efforts in responding to such developments.

“The President urges government trade negotiations teams and South African companies to accelerate their diversification efforts in order to promote better resilience in both global supply chains and the South African economy.”

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