President Trump's announcement of sweeping reciprocal tariffs, while framed as a move towards fair trade, throws a significant wrench into the gears of global supply chains and presents a particularly complex challenge for South Africa.
Image: Lee Rondganger/IOL
President Trump's announcement of sweeping reciprocal tariffs, while framed as a move towards fair trade, throws a significant wrench into the gears of global supply chains and presents a particularly complex challenge for South Africa.
According to Head Lecturer and Programme Coordinator M Com in Supply Chain Management, IMM Graduate School, Dr Ernst van Biljon, the core premise—that tariffs should mirror those imposed on US goods—sounds equitable on the surface. However, the sheer scale of the disparities, with some countries facing near-50% tariffs, signals a potential for major trade disruption.
"South Africa finds itself in a particularly precarious position. With a tariff imposed on its goods entering the US, a figure significantly higher than that of many other trading partners, the country faces a substantial competitive disadvantage. This could severely impact key export sectors, such as agriculture, manufacturing and automotive, potentially leading to job losses and economic slowdown," he said.
Chairperson of the federal council of the Democratic Alliance (DA), Helen Zille says the global tariffs unleashed by US President Donald Trump spell disaster for South Africa, amid the souring bilateral relationship.
On Wednesday, Trump announced reciprocal tariffs for several countries, including 30% for certain South African goods imported into the US. While announcing the wholesale tariffs on countries including the People's Republic of China, United Kingdom, Singapore, India, Japan, and South Korea, Trump remarked that "a lot of bad things" are going on in South Africa.
The reciprocal tariffs are set to come into effect on April 9.
Speaking to broadcaster Newzroom Afrika on Thursday morning, Zille said South Africa's automotive industry will particularly suffer under the tariffs.
“What can one say? It is going to be disastrous for our automotive industry in particular if they have 30 percent tariffs slapped on our motor vehicles that are made in the facilities of Pretoria and Nelson Mandela Bay. Obviously, it is going to be terrible for us,” she said.
“The government won't learn. There is tension between the ANC and just about every democracy in the world, and there is certainly profound tension between the ANC and democrats in South Africa.”
She said the European Union has notably empathised with South Africa, but that should not be interpreted for rubber-stamping the South African government led by President Cyril Ramaphosa.
President Cyril Ramaphosa
Image: Kopano Tlape/GCIS
“They are saying please do not kill the South African economy. That is what they are saying. They are not coming in favour of Cyril Ramaphosa and the ANC. What they are saying is, at this stage because of the ANC’s behaviour, do not kill the nascent economy that has a chance of growing and getting more people into jobs,” she said.
Zille said anything which adds to South Africa’s high unemployment rate is “disastrous”.
“I am glad the Europeans are saying do not kill South Africa’s economy while it is already on its knees, battling to get up. The ANC delivered another attempted kill shot on the South African economy yesterday (Wednesday’s budget vote). The DA will continue to try and save the economy. Donald Trump’s move does not help at all,” she said.
IOL reported on Thursday morning that the African National Congress has lived to see another day after it narrowly passed the national budget in Parliament, with a difference of 12 votes on Wednesday without its partner in the Government of National Unity, the DA.
The ANC, after teaming up with smaller parties within the GNU, got 194 votes while the DA with the uMkhonto weSizwe party (MK) and the EFF garnered only 182.
The voting has created more questions than answers about the future of the GNU after the DA was adamant that it would not vote alongside its biggest partner.
After the events of the National Assembly, the DA said that the Federal Executive would meet on Thursday to discuss its future.
The EFF and the MK had vehemently opposed the passing of the Budget to the point of threatening court action.
jonisayi.maromo@iol.co.za
IOL