US Tariffs are a blow, not Armageddon – Rob Davies, former Trade Minister

CapeTalk’s Lester Kiewit speaks with Dr Rob Davies, Honorary Professor Nelson Mandela School of Public Governance UCT and former Minister of Trade and Industry.

Listen below:

US President Donald Trump’s 30% tariff on South African goods is set to come into effect on the 8th of August.

These high tariffs affect many other countries as part of Trump’s ‘America First Trade Policy’.

In a statement released on 1 August, the Presidency said that government has been engaging with the US to find a new trade deal that benefits both countries.

While the country awaits feedback from the US, the South African government is working on finalizing a package to support industries worst affected by the tariff.

Davies says the best we can hope for out of these negotiations would be what he calls a "less worse outcome".

“You cannot get anything better than you already have. It is not available to the British, or the European Union, or Japan or any of the close allies of the United States.”

- Dr Rob Davies, Honorary Professor Nelson Mandela School of Public Governance UCT (IN: 04:24)

He adds that all BRICS founder member countries have been singled out with particularly harsh treatments.

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However, he argues that while the tariffs are unfortunate, this will not completely devastate our economy.

“We need to understand that this is a blow, not Armageddon.”

- Dr Rob Davies, Honorary Professor Nelson Mandela School of Public Governance UCT

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