Godongwana: Delayed effects of US tariffs still poses future risks to global productivity

Finance Minister Enoch Godongwana said that the delayed effects of the punitive US tariffs and rising protectionism still posed future risks to global productivity and price stability.

The warning comes despite unilateral tariffs imposed by Washington not materialising as severely as expected.

FULL SPEECH | 2025 Medium-term budget policy statement

Earlier this year, US President Donald Trump slapped South Africa with a 30% levy on imports into the US, as part of his broader strategy to protect America’s domestic economy.

The impact on US trading partners was tipped to cause a global economic upset.

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Amid ongoing trade tensions, geopolitical uncertainty and supply chain disruptions, Godongwana said that global growth is estimated to slow slightly to 3.2% in 2025.

"Given this uncertainty, it is critical that we leverage the immense opportunities presented by the sub-Saharan region."

Speaking in Parliament during medium-term budget policy statement on Wednesday afternoon, Godongwana called for a stronger drive for trade on the African continent.

"We continue to make progress in the implementation of the Africa Continental Free Trade Agreement to strengthen multilateralism and regional cooperation."

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