Deputy President Paul Mashatile addressed a gathering at the Ahmed Kathrada Legacy Business Breakfast in Illovo, Gauteng, where he issued a stark warning against escalating tariff wars, following recent tariff hikes announced by US President Donald Trump. Speaking to business leaders and stakeholders, Mashatile advocated for a measured, diplomatic response to the complex dynamics of international trade relations.
In his remarks, Mashatile pointed out that the South African government opted for engagement rather than retaliation in light of Trump’s protectionist policies under the “Make America Great Again” banner. He stated, “Imposing retaliatory tariffs against the US would hurt consumers.” His call for careful deliberation came in the wake of global trends where various nations in Europe and the East had swiftly enacted their own retaliatory tariffs against the US.
Mashatile recalled that prior to the escalation of tensions, President Cyril Ramaphosa had planned to send a delegation to Washington, in response to negative portrayals of South Africa by groups such as AfriForum and Solidarity. He noted, “We want to engage the Trump administration,” highlighting South Africa’s commitment to fostering constructive dialogue despite the prevailing friction.
The Deputy President underscored the repercussions of a trade war, stressing that consumers bear the brunt of such conflicts. “We have already been hit with 30% tariffs for goods that we export to the US,” he lamented, explaining that Trump’s negotiations offered little relief. “Even the American people, goods are going to be expensive for them as much as they will be expensive for other countries.” The implications, he warned, could create a cycle of increased costs, harming consumers worldwide.
Mashatile further emphasised the necessity for South Africa to chart a resilient course through these challenging international waters. He remarked, “We do hope that when we send a delegation there, they will listen to us openly. Let’s try that. If it doesn’t work, we will review [it].” This proposed delegation aims to mend the strained ties and foster a pragmatic dialogue with the US administration.
Beyond trade tensions with the US, Mashatile reiterated South Africa’s unwavering support for Palestinians, asserting that the nation has a moral obligation to advocate for justice and peace worldwide. “Our approach as South Africa is really to support those who fight for justice and peace all over the world,” he articulated, drawing parallels between South Africa’s history of oppression and the struggles faced by other nations.
The Deputy President also highlighted the importance of diversifying South Africa’s trade relations, advocating for strengthened ties not only with the US, one of its primary trading partners but also with emerging economic powers like India and China. “We need to be more self-reliant as a country,” he declared, underscoring the necessity of building economic resilience in the face of global shifts.
As the international landscape evolves, Mashatile expressed optimism regarding the upcoming G20 summit, where he hopes South Africa will collaborate with other nations to focus on economic development.