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President Ramaphosa reacts with concern to US tariffs imposition

ON 1 August, the Presidency issued a media statement, noting “with concern the reciprocal tariffs imposed by the United States (US) on South African products.”

Ramaphosa said the reciprocal tariffs have been imposed by the US on a significant number of its trade partners and South Africa has not been spared. He said, “South Africa will continue negotiating with the US regarding the 30 percent tariff announced by the US, which will come into effect on or after 12h01 eastern daylight time, 7 days after 1 August 2025.”

All applicable exceptions published in the previous US Executive Order are set to remain in force and these exceptions covered products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy and energy products.

He said that the South African government has been engaging the United States, and has submitted a Framework Deal that aims to enhance mutually beneficial trade and investment relations. “All channels of communication remain open to engage with the US, and our negotiators are ready pending invitation from the US.”

In the meantime, Ramaphosa said the government is finalising a package to support companies that are vulnerable to the reciprocal tariffs. The package consists of a  number of measures to assist companies, producers and workers affected by the tariffs on SA exports to the US. He said the details of the measures will be announced in due course.

“South Africa and US trade relations are complementary in nature and South African exports do not pose a threat to US industry. Importantly, SA exports to the US contain inputs from the African Continent and contribute to intra-Africa trade.

“South Africa will continue to pursue all diplomatic efforts to safeguard its national interests.  It is important that as a country we keep our people at work and our companies producing some of the high-quality products destined for many parts of the world.”

Ramaphosa said that the government will intensify its diversification strategy to create resilience of the country’s economy and is working with export councils and industry associations, as well as top exporters to the US with a view to assist with alternative markets. “In this regard, an Export Support Desk to provide updates on developments and provide advisory services to exporters has been established. The details will be published by the Department of Trade, Industry and Competition (DTC) on its website. Ramaphosa said that the government, through the DTIC is also in constant contact with the US on the  Framework Deal. The Executive order published by the United States on 1 August clarifies that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12h01 eastern daylight time, 7 days after 1 August 2025, and entered for consumption, or withdrawn from warehouse for consumption, before 12h01 eastern daylight time on 5 October 2025, shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously impos

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