SA government unveils plan to counter US tariff storm

As the South African government navigates the storms of the United States’ 30% tariffs, it’s looking to alternative markets to safeguard affected industries. This strategy, announced in Pretoria this morning by ministers Parks Tau and John Steenhuisen, outlines measures aimed at easing the impact of the tariff increase.

Tau said the government is looking at Asia, including Japan, Vietnam and Thailand, the Middle East and India. They are pursuing these markets because they see growing demand, existing negotiations and a positive reception to South African products.

“This is not just about trade numbers; it is directly linked to job protection. Diversification is about protecting rural livelihoods and sustainable agricultural growth for our people.

“Government is deploying dedicated infrastructure for market expansion, including trade and agricultural attachés, increased export certification capacity and a concerted effort to align our biosecurity standards with the requirements of these new markets,” he said.

Looking at the bigger picture

Tau said that does not mean they are dumping the US, but rather look for a diversity of markets. To ensure negotiations continue with the US, a high-level negotiation team, including both the departments of agriculture and trade, industry, and competition (DTIC), has been identified and is ready to engage the US towards a mutually beneficial agreement.

“Our goal is to demonstrate that South African exports do not pose a threat to US industries and that our trade relationship is, in fact, complementary. Government is going to do everything possible to keep the American market open for our goods.

“Cabinet has also endorsed the economic response package that includes the establishment of an export support desk, which will serve as a direct point of contact for affected companies,” he said.

Tau added that they are working closely with the department of employment and labour on measures to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges.

‘US benefits from SA’

Meanwhile, Steenhuisen said engagements with senior US diplomats are ongoing to address issues such as biosecurity in the pig and poultry industry, which are being resolved by the department.

Steenhuisen noted, “We have a team led by director-general [Mooketsa] Ramosodi who will be engaging with the US on a number of issues that are being raised; however, some of the issues will have to be dealt with by international relations.

“And it is important to understand that trade with the US also benefits the United States. Many of our products are counter-seasonal, so they pose no threat whatsoever to the US markets. When it comes to citrus pricing and quality of the South African offering, it benefits US consumers and US agro-processors, and I think the US gets a good deal from South African agriculture.”