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Africa|Defence|Export|Power|Products
Africa|Defence|Export|Power|Products
africa|defence|export|power|products

Calling America

29th August 2025

By: Riaan de Lange

     

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"Can’t get a message through; Calling America, that’s what she said to do, . . . She left a number I could call; But no one’s there, no one at all; There must be something going wrong; That number just rings on and on; . . .” – with apologies to Electric Light Orchestra.

This brings us to the third instalment of the Department of Trade, Industry and Competition’s (dtic’s) media statement, titled ‘Joint statement on US tariffs’, published on August 12. I’m not quite sure who constitutes the ‘joint’, as this is not explicitly stated. It appears to be the dtic and the “Department of Agriculture”, the sole reference being: “A high-level negotiation team, including both the dtic and the Department of Agriculture, has been identified.” Not the Department of Agriculture, Land Reform and Rural Development, then? Details matter.

A quick recap: following the 30% ad valorem unilateral tariffs imposed by the US, which came into force on August 7, the South African government has been implementing a response anchored on five key elements: continued engagement with the US to secure a deal and reduce the tariffs; diversification of exports to alternative markets; the introduction of an economic response package to cushion vulnerable companies and workers; trade ‘defense’ (sic) against an import surge and dumping; and demand-side interventions. Why is the South African government persisting with the American spelling in its media releases: ‘trade defense’ instead of ‘trade defence’? Trying to impress Washington?

If you are interested, you can read the complete media statement’s update on the progress of these key elements, which is accessible on the www.thedtic.gov.za website.

The continued negotiation is anchored in a Cabinet-approved revised offer to the US. But if it is a ‘negotiation’, what exactly is South Africa expecting to gain in return – what’s the desired outcome? “The new offer substantively responds to the issues the US has raised in the 2025 National Trade Estimates Report (NTE).” As a reminder, the NTE is an annual report detailing foreign trade barriers faced by US exporters and the US Trade Representative’s (USTR’s) efforts to reduce those barriers.

As a concession, the US can now ship blueberries, pork and poultry. But wait – there is more. South Africa is considering reducing tariffs as a way to address “the deficit and tariff disparity” with the EU, owing to the Southern African Development Community- (SADC-) EU Economic Partnership Agreement.

As for the Cabinet-endorsed economic response package, it includes the establishment of an export support desk to serve as a direct point of contact for affected companies. “Thus far, 23 companies have utilised the export support desk” and “in addition to queries processed, engagements were also initiated with more than 54 South African exporters to the US.”

In addition, “South Africa has accelerated its diversification efforts of export markets and enhanced competitiveness to mitigate the economic impact of losing preferential trade access”. Government is apparently committed to strengthening South Africa’s relationships, particularly under the African Continental Free Trade Area (AfCFTA) Agreement. But is the AfCFTA a viable replacement market for South Africa’s currently US-bound exports?

The South African government is also looking at Asia – including Japan, Vietnam and Thailand – as well as the Middle East and India. What about BRICs?

Then: “A high-level negotiation team, including both the dtic and the Department of Agriculture, has been identified and is ready to engage the US towards a mutually beneficial agreement.”

As regards “trade defense to protect the domestic industry against import surge and dumping”, I’m not sure of its relevance, as no reference is made to anti-dumping duties imposed by the US on South African exports, or vice-versa.

In closing: “Demand-side interventions to leverage buying power by local consumers, private sector and government.” Apparently, “Proudly South African will intensify outreach with corporates and retailers through its online store and Market Access Platform procurement tool, targeted at the private sector to support increased domestic sales of products, with future export capability of the online platform to be used to assist with export market [diversification].”

The focus seems to be on the future – but what about the here and now solution?

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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