The clock is ticking. Only Two days left before a 30% tariff on South Africa’s exports to the US kicks in.

Earlier this month, Donald Trump announced that he would impose a 30% tariff on South African exports to the US from 1 August. Multiple other countries are also facing varying tariff rates.

While some countries, including the UK, Japan and Vietnam, have bagged trade agreements with the US, not a single African nation has reached a deal with America.

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According to the department of trade, industry, and competition (DTIC) The deal on the table includes;

• Importing 750-100 petajoules of Liquified Natural Gas for a 10 year period, unlocking $12 billion;
• Agricultural Market Access by simplifying of U.S. poultry exports under the 2016 tariff rate quota and unlock approximately $91m million in trade. In addition, readiness to open market access for blueberries subject to necessary protocols.
• South African firms committed to invest $3.3 billion in U.S. industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agri-machinery.
• Exemption of specific sectors from reciprocal tariffs to preserve supply-chains e.g. ship building, counter-seasonal agriculture trade, exports from MSMEs (Micro, Small, and Medium Enterprises) of less than $1 million per annum.

Zane Dangor, director-general at the Department of International Relations and Cooperation, told a seminar in Johannesburg that U.S. counterparts had been clear in meetings “that there’s certain things they expect from South Africa, and BEE was high on the agenda”.

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Our country’s BEE laws, which Trump has criticized, offer incentives to companies to hire and promote Black people and in some cases require a certain percentage of Black shareholders to get a licence.

In a statement issued on Tuesday, the DTIC says, “we remain committed to the cause as we await substantive feedback from our US counterparts on the final status on our Framework deal.”

What happens if their efforts fail?

The DTIC is looking at a possible package to assist industries that could be heavy affected.
They have also said they have identified markets across the world while also leveraging the African free trade continental agreement – which remains untapped.