As tensions rise ahead of impending tariffs from the United States, South Africa’s African National Congress (ANC) National Executive Committee member, Kgosientsho Ramokgopa, has voiced urgent concerns regarding the potential fallout from losing vital trade relations with one of its key partners. Amid negotiations aimed at avoiding a 30% tariff set to take effect within days, Ramokgopa asserts that safeguarding this relationship is crucial for the nation’s economic stability.
Ramokgopa, attending the ANC NEC meeting in Johannesburg, elaborated on the considerable risks posed by the looming tariffs, particularly emphasising the repercussions for the automotive sector, which significantly relies on exports to the US. “If we were to lose [our trade relationship with the US], the economy will lose jobs, especially in the automotive sector. I’m talking about those whose products are destined for the US,” he stated, highlighting the interconnectedness of trade and employment.
The agricultural sector would also face serious challenges, with Ramokgopa underlining that the impact would not be limited to one industry alone. His comments come as South African officials engage in critical talks with their US counterparts in hopes of reaching an agreement to avert the tariffs.
Ramokgopa further revealed that a strategic framework has been presented, outlining potential pathways to recalibrate the bilateral relationship with the US. He expressed optimism about the discussions, indicating that the team is awaiting feedback on their proposals, which aim to solidify the economic partnership between the two nations. “We must invest in protecting that relationship with our second biggest trading partner,” he underscored, reflecting the urgency and importance of the situation.
With the clock ticking down to the tariff’s effective date, South Africa grapples with the high stakes of maintaining its economic foothold in the international market. As negotiations continue, the spotlight remains on both nations to find common ground, with the livelihoods of many South Africans hanging in the balance.