Tau seeking clarity on US tariff calculation
Minister of Trade, Industry, and Competition Parks Tau has responded to the Trump administration’s recent imposition of reciprocal tariffs, calling for transparency on how it arrived at the numbers.
US President Donald Trump announced a baseline 10% tariff on all US imports on Wednesday, with 60 countries—including South Africa—subject to higher rates.
Deemed the “worst offenders”, these countries had significantly higher trade imbalances with the United States, he said, warranting higher tariffs.
He said South Africa has been charging 60% tariffs on US goods, so the US would impose a 30% tariff on South Africa.
Speaking on the sidelines of the Gauteng Investment Conference on Thursday, Tau questioned how the U.S. determined a 60% discount to 30% tariff adjustment, stating that South Africa’s own tariff calculations, based on Most Favoured Nation (MFN) rates, stand at 7.6% on average.
"We are speculating, the U.S. is calculating. At this point, we're going to need clarity from the U.S. as to how they arrived at the number and how they would want to increase," said Tau.
He added that factors such as the trade balance and other economic considerations may have influenced the US’ decision.
However, he stressed that South Africa remains committed to engaging with the U.S. and other affected countries to secure long-term trade stability.
"As indicated by the president, we are committed to engaging with the United States of America, as we are with other countries affected by these tariffs, so that we can secure clarity and discuss the future of our trade relations going forward."
The tariffs come as South Africa positions itself as a key investment destination on the continent, with the Gauteng Investment Conference focusing on public-private infrastructure investment to drive economic growth.
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