Govt pushes for revised US trade deal amid rising job loss fears
Government says it is determined to keep negotiating a better trade deal with the United States, despite Washington's sudden decision to impose 30% tariffs on imports from dozens of trade partners, including South Africa.
Speaking at a joint briefing with Trade, Industry and Competition Minister Parks Tau on Monday, International Relations Minister Ronald Lamola confirmed that government has submitted a "comprehensive and ambitious" framework to address trade imbalances and strengthen ties — but admitted that the response from the US had been disappointing.
"It is unfortunate that this government’s efforts in resetting the relationship with the US has been undermined by some actors within South African society,."
He said the new tariffs, set to take effect on 8 August, will disrupt trade flows and may cost South Africa as much as 0.2% in growth. South Africa currently accounts for just 0.25% of total US imports.
"South Africa poses no trade threat to the US economy nor its national security, our exports complement, rather than compete with, US industry, especially in agriculture, where they fill counter-seasonal gaps."
The fallout from the United States’ decision to impose the tariffs could deal a heavy blow to the local economy, with fears of widespread job losses already being voiced.
Last week, the South African Reserve Bank warned the levy could result in as many as 100,000 job losses, in a country where unemployment already sits above 32%.
But Trade and Industry Director General Simphiwe Hamilton has downplayed that figure, saying the department's internal modelling projects a more conservative impact.
"Our estimate is that approximately 30,000 jobs could be affected."
Officials say the final number will depend on how quickly firms can adapt to new markets, how responsive support mechanisms are, and whether a revised deal with the US can still be secured.
Government last week launched an export support desk to help affected businesses diversify markets and access advisory services. Additional measures under consideration include working capital and equipment support through the Industrial Development Corporation, and incentives to shift towards markets in Asia, the Middle East, and across Africa.
Despite the setback, Pretoria says 85% of its exports remain exempt from the tariffs. Lamola said plans were under way to expand trade links with other global markets, including China, Thailand, Japan, and the Middle East.
Meanwhile, Lamola confirmed that President Cyril Ramaphosa will soon appoint a new ambassador to Washington. The post has been vacant since March, when former ambassador Ebrahim Rasool was recalled after being declared persona non grata by US authorities.
Rasool, a former Western Cape Premier and long-serving ANC diplomat, was expelled after controversial remarks on race and foreign policy. His recall briefly strained relations but was defended by Pretoria as an issue of diplomatic sovereignty.
Lamola insisted that trade relations with the US remain intact, and that the new diplomatic appointment will be made without foreign interference.
"The president will announce the name in due course, and we are ensuring the process is not subject to any outside pressure," he said.
South Africa's efforts, Lamola stressed, remain focused on ensuring fairer trade terms, protecting jobs, and strengthening ties with international partners in an increasingly volatile global economy.
ALSO READ:
