The SA government is committed to finding constructive and sustainable solutions to the US decision to impose a 30% tariff on SA exports, through continued engagements with the US “including at a presidential level”, minister in the presidency Khumbudzo Ntshavheni said on Thursday.
“As communicated through the presidency, President [Cyril] Ramaphosa has reached out, through a phone call, to President [Donald] Trump yesterday [Wednesday] morning as part of bolstering SA’s negotiation efforts on the trade agreements,” Ntshavheni said.
She was briefing the media on the outcomes of the cabinet meetings held on July 22 and on Wednesday.
The presidency said the two leaders undertook to continue with further engagements “recognising the various trade negotiations the US is currently involved in. Respective trade negotiating teams will take forward more detailed discussions”.
Ntshavheni said: “Cabinet received an update on the Framework Deal with the US, in light of the 30% tariffs against SA that are expected to come into effect from August 7 2025; with the provision that the tariffs will be reviewed as soon as the two countries reach a deal.”
Trump posted on social media: “It’s midnight!!! Billions of dollars in tariffs are now flowing into the United States of America.”
Ntshavheni said government’s efforts remained focused on growing the economy to save and create new jobs, “which include intensifying diversification efforts and strengthen their global supply chain integration as the country works to expand its export markets to Asia, Europe, the Middle East, and across Africa to enhance our economic resilience”.
“Specific to industries impacted by the tariff increase, government is focusing on demand-side interventions in the impacted industries and targeted interventions to ensure industry stability and safeguard employment.”
These include, among others, the establishment of an Export Support Desk, which will serve as a direct point of contact for affected companies, Ntshavheni said. The export and competitiveness support programme (ECSP) will include a working capital facility and plant and equipment facility to address short to medium term needs across all industries.
The department of employment and labour is set to come up with measures to mitigate potential job losses, “using existing instruments within its entities that can be adjusted to respond to the current challenges”.
“Following consultations with the Competition Commission, a Block Exemption for Exporters has been introduced to enable collaboration and co-ordination by competitors. A draft Block Exemption will be published by the end of the week so that the process can be concluded expeditiously,” said Ntshavheni.
Meanwhile, the department of trade, industry and competition (DTIC) in consultation with industry associations and export councils compiled an SA-China Trade and Investment Package (2025–29) as a basis for economic engagement with China, the minister said.
“The package includes trade, investment, industrial development and skills development. On trade: the priorities are on the exchange of the top 100 products, establishment of a permanent expo in China, and co-operation to address regulatory measures.
“On investment and industrial development: the priorities are on investments in steel, tyres, automotive, battery manufacturing, pharmaceuticals and medical devices, rail manufacturing and the digital economy,” Ntshavheni said.
“The skills development component: focuses on skills associated with the identified priority sectors including to service and provide aftercare maintenance.”
The package was shared with the government of China during the working visit of Deputy President Paul Mashatile to China from July 14-18.
“The deputy president engaged with key Chinese state-owned enterprises and financial institutions, and also participated in the SA-China Investment Forum and the China International Supply Chain Expo (CISCE), where he officially launched the SA National Pavilion to position our country as a gateway to Sub-Saharan Africa for trade, investment and industrial co-operation.”
Ntshavheni said the cabinet was apprised on the outcomes of the technical working visit to Nigeria by mineral and petroleum resources minister Gwede Mantashe to discuss co-operation in the mining, oil and gas sectors as part of the SA-Nigeria Bi-National Commission (BNC).
Nigeria is seeking to develop its mining sector through exploration and production of the vast mineral resources and to leverage SA’s vast experience in the mining sector.
“SA has an interest in securing oil allocations and liquefied petroleum gas (LPG) supply from Nigeria and also learn from Nigeria’s vast experience in oil and gas production,” she said.
“The cabinet was informed of Nigeria’s commitment to finalise, by end of August 2025, the commercial terms for crude oil allocations to SA that will enable direct access for SA state-owned and private refineries.”
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