South African officials question double-digit tariffs on exports by US

JOHANNESBURG - South African officials have called the calculations done by the United States (US) when it imposed double-digit tariffs on South African exports to the superpower into question. 

This week, US President Donald Trump imposed universal tariffs on its global partners, saying this would balance the trade scales.

South Africa is among the countries slapped with tariffs higher than the 10% baseline.

On Friday, Trade and Industry Minister Parks Tau and International Relations Minister Ronals Lamola held a joint press conference in response to global developments in Midrand.

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Almost 48 hours after the US imposed tariffs globally, even to uninhabited locations, economists have decoded the formula used to arrive at the decision.

When simplified, it appears to be the US trade deficit with a country divided by that country's exports to the U, and then a 50% discount.

However, International Relations Minister Ronald Lamola says the South African government is unsettled by the maths.

“South Africa’s average tariff is 7.6% and, therefore, South Africa needs clarity on the basis for the 31% to be implemented by the US.”

While the government says preferential deals like the Africa Growth and Opportunity Act (AGOA) look to be nullified, there are some products that are exempt, including copper, pharmaceuticals, semiconductors and some critical minerals.

Trade officials had hoped to meet with the US earlier on other trade matters but have deferred the meeting until there’s certainty on the latest decision.