By Enyichukwu Enemanna
South Africa is preparing a last-minute “enhanced” trade proposal at the advice of U.S. officials, hoping to escape a 30% tariff by Washington which takes effect Friday, August 1, its trade minister said on Thursday.
President Cyril Ramaphosa had earlier proposed a trade deal to his US counterpart, Donald Trump in May and revised it in June, but received no response.
“We’re having to navigate a last-minute proposal that’s enhanced from the proposal that we had initially given,” Trade Minister Parks Tau said on South Africa’s 702 radio, adding: “And to tell the truth, it’s wait and see.”
The countdown to the August 1 deadline has caused apprehension and uncertainty in South Africa, where the central bank governor has estimated that a 30% U.S. tariff would put 100,000 jobs at risk, with the agriculture and automotive sectors most affected.
The U.S. is South Africa’s second-largest bilateral trading partner after China.
South Africa exports cars, some manufactured goods, citrus fruits and wine to the U.S. market.
The Trade Minister said South Africans spoke to U.S. officials on Wednesday night, both at the level of Washington’s embassy in Pretoria and also the U.S. Trade Representative, but uncertainty lingered on what would happen as the tariff deadline approached.
“They (said) they would encourage us to resubmit our proposal, possibly an enhanced proposal, to the United States government,” Tau said.
A top South African diplomat said on Tuesday that U.S. demands on domestic affirmative-action policies were complicating efforts to secure a trade deal.
Bilateral relations between both countries have been strained since Trump came to office in January.
It was exacerbated by South Africa’s Black Economic Empowerment (BEE) policies, enacted to address the legacy of centuries of racial inequality, which Washington has kicked against.
South Africa also initiated a genocide case against Israel, an ally of the United States, over its war in Gaza, an allegation that Washington has vehemently rejected.
