Trump's BRICS tariff threat 'really because he wants to push US industrial development' - African United Business Confederation

The African United Business Confederation (AUBC) has added its voice to the concerns being expressed by a number of groupings about the Trump administration's threat of a 30% tariff on South African goods imported into the US.

The impact on local products poses a direct threat specifically to South African manufacturing, agriculture, and value-added exports, says AUBC president George Sebulela.

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This will jeopardise decades of trade progress under frameworks such as AGOA, he adds, affecting the economy and sparking job losses.

"The trade balance pressure would also come to the fore, where we're going to see the depreciation of the rand, which would lead investors to decide to look to different countries for investment purposes, so the amount of foreign direct investment would drop as well."

George Sebulela, President - African United Business Confederation

"That will result in job losses because those companies will decide to offload employees and that's where the big concern comes in."

George Sebulela, President - African United Business Confederation

Sebulela emphasises the need for South Africa to look at alternative markets, which would include exploiting opportunities on the continent.

A ready vehicle for this is our AfCFTA agreement as part of the African Continental Free Trade Area, which is the world's largest such area.

"We need to accelerate this and influence the African Union to ensure that this trade programme is taken very seriously."

George Sebulela, President - African United Business Confederation

Sebulela also weighs in on Donald Trump's threat to impose an additional 10% tariff on BRICS members in response to their ‘anti-American' stance.

RELATED: Donald Trump threatens extra 10% tariff in response to ‘Anti-American’ policies from BRICS Bloc

"Remember that Trump is primarily focusing on making deals. When you talk about presidents, normally it's a combination of a number of things including social norms. For him to say, another 10% for BRICS countries, is because he really wants to push his own domestic industrial development."

George Sebulela, President - African United Business Confederation

"The problem here is that Trump realises BRICS is becoming more powerful. The extra tariff is absolutely unfair - as these countries, we need to build our capacity independent of the US."

George Sebulela, President - African United Business Confederation

While this will not happen overnight, he emphasizes, it should be the strategy of the BRICS nations going forward as the bloc takes a bigger share of the world economy.

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