SA has sent officials to the US to prepare for trade negotiations after attempting for months to strike a deal with the Trump administration to roll back steep tariffs, President Cyril Ramaphosa said on Tuesday.
US President Donald Trump imposed a 30% tariff on imports from SA last month after the government made several unsuccessful attempts to propose a trade agreement.
The US is SA’s second-largest trading partner, with more than 600 US companies operating locally and 22 SA firms invested in the US.
“The presidency and the department of trade, industry & competition have sent representatives … who are preparing for the further formal negotiations with the US government, which should be taking place in just a few days,” Ramaphosa told parliament.
He said the SA officials would meet representatives of Trump’s administration, legislators and business figures in New York and Washington.
The delegation’s success in Washington will have material consequences not only for tariff relief, but for the broader trajectory of SA’s trade and investment policy in a shifting global environment.
The president’s announcement during oral replies to questions in the National Assembly marks an escalation in the government’s diplomatic response to what he termed “senseless tariffs”.
The delegation is mandated to secure a mutually beneficial trade and investment agreement, said Ramaphosa.
He said the SA team would meet US administration officials, legislators and private sector stakeholders to advance SA’s revised trade proposal, which builds on an earlier package submitted on May 20.
“SA is responding to the imposition of tariffs by the US by intensifying its engagement with the US administration on trade and investment,” the president said.
The tariffs have affected SA exports including minerals, agricultural products, pharmaceuticals and motor vehicles.
Key Points: SA-US Trade Negotiations
- SA has sent officials to the US to prepare for trade negotiations after months of attempts to roll back 30% tariffs imposed by the Trump administration.
- The US is SA’s second-largest trading partner, with 600+ US companies in SA and 22 SA firms invested in the US.
- Delegation will meet US government officials, legislators, and business leaders in New York and Washington within days.
- Tariffs impact SA exports including minerals, agriculture, pharmaceuticals, and motor vehicles.
- SA is intensifying diplomatic efforts, avoiding retaliation, and has launched domestic economic support packages for affected industries.
- Government accelerating diversification of export markets, focusing on Africa, China, the EU, and Gulf states.
- Tariffs have caused uncertainty in bilateral trade and investment relations.
While the legal basis for the tariffs remains contested, SA has opted not to pursue retaliatory measures at this stage.
Instead, the cabinet has endorsed a domestic economic response package aimed at supporting affected industries and mitigating the loss of preferential trade access.
The measures include the activation of the Localisation Support Fund and the rollout of an Export and Competitiveness Support Programme, which will provide working capital and equipment financing to companies facing tariff-related disruptions.
These instruments are administered under the Public Finance Management Act and are subject to oversight by the National Treasury.
The president said the government was accelerating efforts to diversify export markets, with particular emphasis on the African Continental Free Trade Area, as well as bilateral engagements with China, the EU and Gulf states.
“Our economic relations [with the US] are strong and go back many decades,” he said, adding that trade between the two countries had historically been complementary.
However, the imposition of tariffs had introduced a degree of uncertainty into bilateral relations, with potential implications for future investment flows and strategic co-operation.
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