SA, US finalising trade deal as tariff talks continue

The discussions include both tariff and non-tariff measures.

The update follows President Cyril Ramaphosa’s recent working visit to Washington, D.C., which aimed to strengthen diplomatic and economic relations between the two countries. 

Cabinet has since welcomed the improved cooperation, which marks a shift in tone following recent tensions.

Briefing the media on Thursday on the outcomes of Wednesday’s cabinet meeting, Ntshavheni said South Africa had achieved its primary objectives for the talks.

One key proposal is the tariff-free export of 10,000 South African-manufactured vehicles to the US under the current trade framework.

This comes in response to US President Donald Trump’s decision to impose a 25% import tariff on vehicles and auto parts from South Africa—a move framed as part of his administration’s broader strategy to boost domestic production. 

However, the decision threatens South Africa’s automotive industry, which exports approximately $1.9 billion worth of vehicles annually to the US.

Ntshavheni also confirmed that critical minerals and resource partnerships are part of the ongoing trade discussions.

“There are licensing requirements for you to mine in South Africa, they (America) have a shortage of serious minerals like magnesium used to create magnet and so forth and we have indicated that if they want it they must partner with those who are already holding exploration licenses for such minerals or mining licenses in that matter,” she said.

During his visit to the White House last week, President Ramaphosa addressed political tensions between the two nations. 

He indicated that he expects President Trump to attend the G20 Summit, to be hosted in Johannesburg this November, despite US Secretary of State Marco Rubio having boycotted a G20 foreign ministers’ meeting earlier this year.

“The cabinet looks forward to the continued participation of the United States administration in the G20, including the possible attendance of President Trump to the G20 Summit,” Ntshavheni added.

Meanwhile, Ntshavheni also responded to growing public debate around Elon Musk’s Starlink satellite internet service, following reports that the government was exploring a BEE exemption to allow the company to operate in South Africa.

She clarified that the South African government has never prioritised or endorsed Starlink, and is instead looking at options to develop its own satellite internet infrastructure to meet connectivity demands.

“The Chinese have better technology in terms of the low orbit satellite than Starlink, that’s what I have said on the record. I never said we are introducing Starlink, and there was no discussion of Starlink at the White House,” Ntshavheni added.

Communications Minister Solly Malatsi also weighed in, saying any upcoming policy changes are not tailored to benefit Starlink but aim to create space for foreign companies to operate locally while upholding the country’s transformation objectives.

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