South Africa has been urged to seek Nnew trade partners amid US tariff shock.
Image: Doctor Ngcobo / Independent Media
The recent imposition of tariffs by the United States on a range of South African exports has sent shockwaves through the nation’s economy, prompting calls from both local and international analysts for South Africa to diversify its trade partnerships.
On April 1, the US government announced 31% reciprocal tariffs on South African goods, mainly targeting agricultural products and minerals, including exports such as vehicles, precious metals, machinery, and citrus.
US Trade Representative Katherine Tai stated that these measures address trade imbalances and promote fair competition.
The tariffs are expected to strain South Africa’s economy, which is already grappling with various challenges.
Dr Thandiwe Msimanga, an economist at the University of Cape Town, expressed her concerns during a live discussion on the local news platform eNCA on April 3.
International experts also weighed in, echoing these sentiments.
Dr Robert Green, a trade analyst at the International Trade Centre in Geneva, spoke during a webinar hosted by the World Trade Organisation on April 5 stressing the need to negotiate with trade deals with other friendly states.
"South Africa must consider looking beyond traditional markets like the US. The current situation presents an opportunity to strengthen ties with emerging economies, particularly in Asia and Africa."
Sipho Khumalo, a trade policy expert emphasised during a radio interview on SAFM yesterday that "the tariffs could create a ripple effect throughout the economy.
“South Africa must diversify its trade relationships to ensure resilience."
The South African government is exploring new trade avenues in response to the tariffs.
Minister of Trade and Industry Ebrahim Patel stated in a press conference on April 2 that South Africa would not impose tariffs yet, warning that responding without understanding how the US set the rate and without first talking to the US could be counterproductive.
He added, “We actively seek to engage with countries in Asia, the Middle East, and other regions to broaden our trade partnerships. The global market offers numerous opportunities that we must seize.”
Political analyst at the London School of Economics, Dr. Fiona Laird, highlighted the importance of this strategic shift.
"South Africa's ability to pivot towards new markets will be crucial in the coming years. Establishing stronger ties with countries like India and Brazil could provide the economic boost needed to counteract the effects of US tariffs."
According to the US government, these tariffs will take effect on April 9.
IOL News