South Africa has chosen not to retaliate against the 30 percent tariffs threatened by the United States, its trade minister confirmed Tuesday.
Pretoria aims to ease tensions by facilitating US exports and proposing deals across multiple sectors, despite mounting geopolitical and trade challenges.
Trade Minister Parks Tau described the situation as an “impasse” driven by complex domestic and international issues between the two nations.
South Africa remains hopeful for substantive feedback from the US after offering to import Liquefied Natural Gas and open markets for American agricultural products.
South African firms have pledged $3.3 billion in investments in US industries such as mining and metals recycling, showing commitment to mutual growth.
Both governments also agreed to collaborate on critical minerals, pharmaceuticals, and agricultural machinery projects, signaling a push toward joint ventures. The US is South Africa’s second largest trading partner, behind China, with key exports including agricultural products, precious metals, and vehicles.
The threatened tariffs jeopardise thousands of jobs, especially in the automobile and citrus sectors, once protected under the AGOA trade deal. US President Donald Trump’s tariffs have effectively nullified this preferential agreement, stirring economic uncertainty in South Africa’s export markets.
Minister Tau emphasised Pretoria’s efforts to reset the trade relationship, calling it “unavoidable” to move forward constructively with Washington. In a separate statement, President Trump said he will likely skip the upcoming G20 summit in South Africa, citing concerns about violence in the country.
Trump repeated unfounded claims about persecution of white citizens in South Africa, fueling diplomatic tensions ahead of the international meeting. As the August tariff deadline nears, both countries stand at a delicate crossroads, balancing economic interests with political discord.