FX.co ★ U.S. Imposes 30% Tariff on South Africa After Trade Talks Fail

The United States is set to impose a 30% tariff on South African exports starting next week, following Pretoria's inability to secure a trade agreement before the deadline set by President Donald Trump. This new tariff is part of a more extensive executive order signed on Thursday, which introduces tariffs ranging from 10% to 41% on numerous countries, aiming to restructure global trade to benefit the U.S. Despite several months of discussions and a proposal from South Africa to purchase U.S. LNG and invest $3.3 billion in American industries, their negotiations were unsuccessful. Trade Minister Parks Tau has expressed concern that this tariff poses a significant threat to crucial export industries, including the automotive, agro-processing, steel, and chemical sectors. He emphasized that the government is taking swift action to protect jobs. The United States is the second-largest trading partner for South Africa, with major exports such as automobiles, steel, and citrus. Officials have noted that deteriorating relations with Washington, influenced by factors such as affirmative action laws, land reform policies, and South Africa's case against Israel at the International Court of Justice, have played a role in the breakdown of negotiations and the resulting economic repercussions.