No way out
Where would it be more appropriate to write about tariffs than in the Roof Terrace and Lounge at 38º53'49.1”N, 77º1'59.8”W – Hotel Washington. It is only a stone’s throw away from 38º89'77"N, 77º03'65"W, a landmark popularly known as The White House. From the coordinates, you will notice that a stone’s throw is no exaggeration.
Unfortunately, Donald Trump, the recently inaugurated US President, was not in the house – in residence, if you will – although I did spot a Tesla in the driveway. Well, in the parking area. However, I didn’t see our countryman.
Although the streets of Washington DC were pretty deserted, except for tourist groups, it wass not a quiet time by any stretch of the imagination, particularly in the area of this column’s interest – tariffs. I have deliberately omitted ‘trade’ because I do not know the extent to which trade would be impeded by the imposition of ‘reciprocal tariffs’.
With Trump deciding on a new tariff regime, South Africa should pray that this is confined to ordinary customs duties and is not extended to trade remedies, because, should this be the case, the chickens will indeed come home to roost. This is a reference for readers who have missed the annual ‘obligatory’ column on gallus domesticus.
The ‘reciprocal tariffs’ are founded on the US President’s premise: “It’s called you screw us, and we screw you. Very simple.” These are politely referenced as tit-for-tat tariffs.
There is also the unilateral trade preferential programme of the US, the African Growth and Opportunity Act, which was passed by the US Congress in 2000 and helps the economies of sub-Saharan African countries. South Africa is a significant beneficiary.
This raises the question of whether anyone has undertaken a study, on a six-digit tariff subheading basis, comparing South Africa’s tariffs with those of the US to consider if there is any alignment. If South Africa is a kind and caring ‘big brother,’ it could share this research with other Southern African Customs Union States. I suppose this has not been contemplated or done. In that case, I expect that the International Trade Administration Commission of South Africa has the resources to oblige as it advises the Minister of Trade, Industry and Competition (dtic) on tariff and trade policy. And why not triangulate this with European Union tariffs? It would be an interesting comparison.
With respect to the ‘t’ in dtic – trade – has the department contemplated potential markets for South African goods to the US? When was there a trade mission to the US? To which specific states, and is one planned for this year?
In searching for trade missions, I found a December 2, 2024, Media Room release which is titled ‘The dtic showcases SA trade and investment opportunities to US importers and investors’ and opens with: “The dtic has welcomed the commitment made by the US to support the participation of ten export-ready black-owned South African businesses to participate in the Atlanta-based Go Global Conference International Trade and Investment Expo.” This was before Trump’s inauguration on January 20.
Also on trade missions, I found an October 15, 2019, Media Room release from the then Department of Trade and Industry titled ‘The dti leads an agroprocessing selling mission to America’. Was this the last?
How does 38°55’10.6”N, 77°3’38.9”W (the South African embassy in Washington DC) feature in all this? “The mission is committed to inculcating the spirit of Ubuntu and the Batho Pele (People First) principles in the provision of its services, which is reflective of our country’s values of putting humanity central to all that we do. South Africa is open for business and continues to provide a wealth of opportunities for those looking at investing in an emerging market that boosts a stable democracy, incredible infrastructure and world-class financial systems.”
Is there a way out for South Africa from the imposition of US reciprocal tariffs?
As for the title of the column, the Roof Terrace and Lounge is famous for being used in a scene in the 1987 movie No Way Out.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation