South Africa accepts Trump's tariffs: ‘You need to be clever in how you box with the US’ – Agri SA

CapeTalk’s Lester Kiewit speaks with Johann Kotze, CEO of Agri SA, and Peter Major, a mining analyst and Director of Mining at Modern Corporate Solutions.

Listen below:

South Africa has taken the decision not to retaliate against the tariffs announced by the United States.

This means the 30% trade tariff will come into effect on 1 August.

Some business leaders say the tariffs will devastate their industries.

The Citrus Growers' Association of Southern Africa (CGA) has called for urgent action from President Cyril Ramaphosa, as they rely heavily on exports to the US.

South Africa’s wine sector will also be hard hit, which could lead to significant job losses, according to Agri SA.

Kotze says they are hopeful that tariffs will not go higher than 30% and that a new deal can be negotiated to replace AGOA.

“It is not easy to negotiate with America. We are small in what we do, and they are bullish and big. So, you need to be clever in the way you box.”

- Johann Kotze, CEO - Agri SA

In the minerals and mining sector, Minister Gwede Mantashe says we must explore other markets to manage the tariff hikes.

RELATED: WATCH: Trump imposes 30% tariff on South African exports to address trade deficit

However, Major says Mantashe is making this seem easier than it will be.

“We are not as dominant as we think. We do not have specific minerals that people cannot get elsewhere.”

- Peter Major, Mining Analyst - Modern Corporate Solutions

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