President Cyril Ramaphosa placed a strategic phone call to US President Donald Trump on Wednesday morning as South Africa braces for the reality of a 30% tariff on its exports to the United States, Cape {town} Etc reports.
This dialogue comes against the backdrop of ongoing trade negotiations between the two nations, showcasing a commitment to enhancing bilateral relations and economic cooperation.
In a media briefing on Thursday, Minister in the Presidency Khumbudzo Ntshavheni elaborated on the cabinet meeting where members received an update regarding the framework deal with the United States.
The increased tariffs, effective immediately, have raised widespread concerns, yet both South African and US leaders appear committed to reaching an agreeable resolution.
‘Cabinet affirmed government’s commitment to finding constructive and sustainable solutions through continued engagements with the United States, including at a presidential level,’ said Ntshavheni.
Ntshavheni highlighted that President Ramaphosa’s outreach to Trump is part of a broader strategy aimed at bolstering South Africa’s negotiation efforts on the trade agreement.
As the South African Government navigates these challenges, its primary focus remains on stimulating economic growth, safeguarding existing jobs and creating new employment opportunities.
This will include intensifying diversification efforts while strengthening the country’s integration into global supply chains.
Ntshavheni emphasised the importance of expanding South Africa’s export markets not only to the US but also to regions like Asia, Europe, the Middle East and across the African continent, aiming to bolster the nation’s economic resilience during these turbulent trading conditions.
In response to the potential impact of the tariff increase, the government aims to implement targeted interventions for the industries affected.
Ministers from the departments of trade and industry, competition, justice, and agriculture are expected to provide detailed briefings on the planned support measures for affected sectors by next week.
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Key interventions highlighted include:
- The establishment of an export support desk designed as a direct point of contact for companies affected by the tariff increases.
- Assisting firms in absorbing the tariff through long-term resilience strategies that protect jobs and enhance productive capacity.
- A localisation export and competitiveness support programme including a working capital facility and plant and equipment resources to address immediate industry needs.
- Collaboration with the Department of Employment and Labour to mitigate potential job losses by leveraging existing instruments to tackle current challenges effectively.
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