Trade Minister Parks Tau comments on Donald Trump's on-then-off tariff decisions
The impact has been ‘huge’ for South Africa, disrupting trade and projections, says Minister Tau. “It is important that we normalise relations with the US,” he says.
Minister of Trade, Industry and Compeition, Parks Tau. Photo: DTIC
702's Bongani Bingwa speaks to Parks Tau, South Africa's Minister of Trade, Industry, and Competition.
Listen below:
In a stunning reversal, US President Donald Trump said he would temporarily suspend the hefty duties he had just imposed on most countries while further ramping up pressure on China, sending global stocks rocketing higher.
Trump's turnabout came less than 24 hours after steep new tariffs kicked in on most trading partners, following the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.
The upheaval erased trillions of dollars from stock markets and led to an unsettling surge in US government bond yields that appeared to catch Trump's attention.
These rapid changes are causing unprecedented uncertainty in the trade and investment markets.
The impact has been 'huge' because it has 'disrupted' trade and projections regarding investments from many multi-national companies, says Minister Tau.
"It is extremely difficult and part of the reality is that it's not completely off... what is off right now, is the 30%... what remains on is the 10% across the board increase in tariffs...
- Minister Parks Tau, Department of Trade, Industry and Competition
"We've received a note about the decisions that were made yesterday and our team did have an interface with the US Embassy yesterday... We have received confirmation that the 30% has been removed..."
- Minister Parks Tau, Department of Trade, Industry and Competition
"These [America and China] are two of our biggest trading partners... and that would certainly have an impact on the trade we do with both. The reality is that it also impacts how our country redirects products in different parts of the world so the tariffs they imposed on each other would have a huge impact on everybody else."
- Minister Parks Tau, Department of Trade, Industry and Competition
Tau says there are meetings planned in June/July for South Africa to 'engage' with the US to iron out issues.
The US wants 'engagement that is mutually beneficial' and argues that current trade is 'disproportionately skewed' in South Africa's favour, says Tau.
"We will put something firmly on the table. We are currently engaging... What is clear from the US is that they want an engagement that is mutually beneficial... they think that the tariffs and trade structures have been disproportionately skewed in our favour and the same with many other countries."
- Minister Parks Tau, Department of Trade, Industry and Competition
"South Africa has multi-nationals that are invested in the US... the US has about 600 companies that are also invested in South Africa..."
- Minister Parks Tau, Department of Trade, Industry and Competition
".. we would need to engage with them on issues around geopolitics... that's one part of the discussion ... The second part is the trade and investment relationships we have with the US and we need to create a degree of certainty."
- Minister Parks Tau, Department of Trade, Industry and Competition
"... it is important that we normalise relations with the US..."
- Minister Parks Tau, Department of Trade, Industry and Competition
Scroll up to the audio player to listen to the conversation.