Following US President Donald Trump’s announcement on the US tariffs, the Democratic Alliance (DA) called for amendments to the Expropriation Act that renew confidence in the protection of private property, with ActionSA accusing the Government of National Unity (GNU) of failing to defend the interests of the South African economy.

On Monday, Trump wrote letters to 14 countries, informing them of new tariff rates, announcing that countries including Japan, South Korea and South Africa will face tariffs of up to 30% as part of a fresh wave of levies to kick in on August 1.

DA leader John Steenhuisen explained that the announcement was deeply concerning and would have “wide-ranging and devastating” consequences for South Africa.

“Whilst not explicit, the announcement would signal the end of the African Growth and Opportunity Act which gives South Africa duty-free access to the US for more than 6 000 products, including goods in the automobiles, agriculture and textile industries,” he said.

Steenhuisen also called for review of the Broad-Based Black Economic Empowerment (BBBEE) Act, to ensure the focus was on poverty, not race.

He noted that the brief extension from July 9 to August 1 provided Ramaphosa with a small window of opportunity to make the necessary decisions to improve trade relations.

The party also called for a boost in private participation in freight rail, with appropriate infrastructure investment and improved security to safeguard vital infrastructure.

He noted the country’s highest unemployment rates, saying the tariffs would impact thousands of farmers, manufacturers and workers’ jobs.

“…billions of rands will be lost in export revenue, making this a crippling blow to the economy.

“Now, more than ever, the African National Congress needs to accept the fact that South Africa is in need of urgent reforms that will bring about increased economic growth and try to cushion some of the job losses which will no doubt follow yesterday’s announcement by the US President,” explained Steenhuisen.

The party also wants concessioning of ports, to improve efficiency and turnaround times in getting products in and out of the country, while calling for the removal of barriers that impede private sector participation in the production and transmission of electricity.

Steenhuisen said intervention in failing local governments was needed to improve service delivery and address corruption and financial mismanagement, urging Ramaphosa to deal decisively with issues of corruption, which he said were systemic throughout all spheres of government.

In his capacity as Agriculture Minister, Steenhuisen committed to strengthening trade relations with the country’s existing international partners, while actively working to expand access to new markets for South African produce.

GOVERNMENT FAILURES

Meanwhile, ActionSA noted that the imposition of the tariffs, which it said would not only jeopardise South African businesses, workers, and households, underscored the government’s “continued failure” to secure a viable trade solution after previously strained negotiations left the tariffs on hold since April.

“While President Trump’s claim that the United States ‘can no longer afford to run a trade deficit with South Africa’ runs counter to basic economic principles and established trade norms, the imposition of these tariffs is about more than economics. Rather, it reflects a political response to South Africa’s alignment with nations that the United States regards as pariah States or adversaries. That our government has chosen ideological loyalty over national interest has now come at an immense cost,” explained ActionSA Member of Parliament Alan Beesley.

He said South Africa was one of 14 countries arbitrarily targeted under this policy, a reflection of Washington’s “confused frustration”, but warned that the global consequences of foreign policy missteps would no longer be ignored.

“…but make no mistake: the brunt of this misguided policy will not be borne in government boardrooms, but in the orchards, mines and factories of our nation. It is ordinary South Africans who will suffer job losses, reduced earnings, and heightened insecurity because of government inaction and diplomatic failure,” Beesley pointed out.

He noted that while blame would no doubt be shuffled between the Presidency, the departments of Trade, Industry and Competition, and International Relations and Cooperation, the GNU could not escape responsibility for its “failure” to defend the interests of the South African economy.

ActionSA and Solidarity called on Ramaphosa to urgently address this crisis and to provide full transparency, with Beesley saying his party wanted a clear plan to mitigate the damage already unfolding presented.

FURTHER ENGAGEMENTS

“South Africa can still escape the pain that the US’s 30% trade tariff will bring upon its economy, provided Ramaphosa takes urgent action.

“There is still room for negotiation until August 1, but the problem is that our government and Ramaphosa are always dragging their feet on this. The Americans wanted to negotiate, so the situation could still be resolved,” said Solidarity head of public relations Jaco Kleynhans.

Kleynhans explained that one must consider that America was also seeking a political settlement with South Africa and not just an economic settlement.

Solidarity CEO Dr Dirk Hermann highlighted that the South African government had every opportunity to conclude a positive trade agreement with the US, noting that it had failed the country and its people, and their ideological “narrow-mindedness and political arrogance” would cost ordinary people their jobs.