Lamola: US tariffs need resilience, innovation from SA

The move comes as the United States prepares to implement a 31% tariff on South African goods from 9 April, raising concerns over fair trade and economic impact.

Speaking at a joint media briefing with Trade, Industry and Competition Minister Parks Tau on Friday, Lamola emphasised the importance of reducing reliance on any single market by diversifying trade relationships across Africa, Asia, and the Middle East. 

He said the African Continental Free Trade Area would be central to this strategy.

"Focus on value-added production. Industries will prioritise transforming raw materials into high-value finished goods, reducing tariff exposure and driving innovation to improve profitability. This supports South Africa's industrial policy objectives of boosting local manufacturing and creating jobs."

He further warned that the new US tariff measures could undermine partnerships like the African Growth and Opportunity Act (AGOA), harming key sectors such as automotive, agriculture, and manufacturing.

"While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and trade prosperity. The tariffs affirm the agency to negotiate a new bilateral and mutually beneficial agreement with the U.S. that will establish a fairer trade relationship with the US," he added.

Speaking at the media briefing, Trade, Industry, and Competition Minister Parks Tau cautioned against retaliatory tariffs, saying such measures would be ill-conceived without fully understanding the basis for the US's decision.

"Of course, it concerns us. We have been concerned about the World Trade Organization and its systems, in particular the dispute resolution systems and the application of dispute resolution mechanisms, but also overall compliance to World Trade Organization, and that's why we are advocating for a reform of the World Trade Organization."

Lamola reiterated that South Africa’s trade strategy would be driven by the national interest in creating a “better Africa and a better world” through enhanced inter-African trade and global cooperation.

"The government will invest strategically in industries impacted by the tariffs, supporting economic growth through modernisation and targeted infrastructure development. This aligns with the national interest of ensuring the well-being of South Africans. Forge global alliances. South Africa will continue to build strategic partnerships with other nations, enhancing collaborations."

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