SA is preparing a last-minute “enhanced” trade proposal at the urging of US officials in hopes of avoiding a 30% tariff which kicks in on Friday, trade minister Parks Tau said on Thursday.
SA initially submitted a proposed trade deal to President Donald Trump’s administration in May and revised it in June, but received no response.
“We’re having to navigate a last-minute proposal that’s enhanced from the proposal that we had initially been given,” Tau said on Radio 702, adding: “And to tell the truth, it’s wait and see.”
The countdown to the August 1 deadline has stirred fear and uncertainty in SA, where the central bank governor has estimated a 30% US tariff would put 100,000 jobs at risk, with the agriculture and automotive sectors hit hardest.
The US is the country’s second-largest bilateral trading partner after China. SA exports cars, some manufactured goods, citrus fruit and wine to the US.
Tau said government officials spoke to US officials on Wednesday night, both at the level of Washington’s embassy in Pretoria and also the US trade representative, but uncertainty lingered on what would happen as the tariff deadline approached.
“They (said) they would encourage us to resubmit our proposal, possibly an enhanced proposal, to the US government,” Tau said.
A top SA diplomat said on Tuesday that US demands on domestic affirmative-action policies were complicating efforts to secure a trade deal.
Bilateral relations have been strained by SA’s BEE policies to address the legacy of centuries of racial inequality and its genocide case against Israel at the World Court, which Israel and the US vehemently oppose.
Reuters
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