I recall US President Donald Trump expressing a willingness to support reciprocal tariffs, where trade partners impose identical duties on each other’s imports.
If that position still stands in Washington, SA has an opportunity it should not ignore. Why not propose a straightforward, balanced trade arrangement: a 10% tariff on all goods traded between the US and SA?
The numbers make a compelling case. SA exports about $15bn worth of goods to the US, while importing about $8bn in return. Even under equal tariffs, SA would retain a significant trade surplus. But more than that, such a policy could catalyse industrial growth within our borders.
Consider the manufacturing sector for industrial fabrics, a field where SA already holds an edge in quality. Our producers manufacture globally competitive products such as ropes, webbings, slings, lashings and tarpaulins. Today the high-tenacity yarns used to make these fabrics are imported duty-free, enabling our manufacturers to compete efficiently on the world stage. The US is one of the biggest markets for these products.
Under a reciprocal tariff agreement US competitors would face the same 10% duty SA exporters would bear — levelling the playing field. This would not only protect our industries but also encourage expansion. Investments would follow. New factories, jobs and a broader tax base could significantly boost SA’s GDP. And this is just one sector — similar ripple effects could occur across the manufacturing landscape.
The bigger question is whether there’s political will to pursue such a strategy. Trade negotiations are complex, but the principle of fairness is simple. Reciprocity is not protectionism — it’s parity. And if the US truly values balanced trade, as it has publicly claimed, SA should seize the initiative and lead the conversation.
We can either continue to accept lopsided trade dynamics or position SA as a rising force in global manufacturing and exports.
Prasad Dole
Constantia
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