South African President Cyril Ramaphosa said on Monday that U.S. President Donald Trump’s plan to impose a 30% tariff on South African goods from August 1 is based on a wrong understanding of trade between the two countries.
He added that talks with the U.S. would continue.
Trump told 14 countries, including South Africa, that they would face higher “reciprocal” tariffs starting next month. South Africa has been in talks with the U.S. since May but has not yet reached an agreement.
Ramaphosa said in a statement that South Africa’s average tariff on imported goods is 7.6%, and that 77% of U.S. products enter the country without any tariffs. He welcomed Trump’s indication that the 30% tariff could still be changed based on trade discussions and encouraged local companies to explore other export markets.
Agriculture Minister John Steenhuisen said U.S. officials wanted to see “more ambition” in South Africa’s trade proposals and that officials are still trying to understand what the U.S. wants in the talks. He said the aim is to see if a deal is still possible.
South Africa first presented its trade proposal during a May visit to the White House and continued discussions at a U.S.-Africa summit in Angola last month.
The U.S. is South Africa’s second-largest trading partner after China. In addition to car parts and manufactured goods, South Africa exports fruit, wine, nuts, and other farm products to the U.S.
Wine producers are looking at price changes and shifting inventory to manage the impact of the planned tariff. Agri SA, an industry group, said citrus growers may lose market share to Chile and Peru and warned about potential risks for other exporters, including those in the ostrich leather business.
