South Africa to present revised trade deal to US after tariff hike

SOUTH AFRICA – South Africa is submitting a new trade proposal to the United States in a bid to reduce the 30% tariff recently imposed on its exports.

Trade Minister Parks Tau said Cabinet had approved the revised offer as a framework for negotiations, following months of unsuccessful discussions with Washington that ended before US President Donald Trump’s deadline last week.

The 30% levy placed on South African goods is the steepest applied to any sub-Saharan African country, creating fresh pressure on the region’s largest economy to reach an agreement.

Tau told reporters the updated proposal directly responds to matters raised in the 2025 US National Trade Estimates Report, including sanitary and phytosanitary concerns, which have been partly addressed.

As part of these resolutions, containers carrying poultry and pork from the US are scheduled to arrive in South Africa in two weeks, signalling progress in resolving some agricultural trade barriers.

Agriculture Minister John Steenhuisen, who also leads the second-largest party in the coalition government, noted that the original South African proposal had been dismissed by Trump’s administration for lacking ambition.

He described the latest submission as broad and open, expressing confidence it aligns with the level of ambition sought by Washington while also serving the interests of both sides.

The US tariffs, which came into force last week, affect a wide range of South African exports, with no immediate exemptions announced by American trade officials.

Steenhuisen warned in an interview that the elevated tariffs could remain in place unless the South African government agreed to amend certain domestic policies, including affirmative action measures that have drawn criticism from Trump.

While neither minister disclosed detailed figures on the revised offer, the urgency of the talks reflects concerns over the potential economic impact if the US duties persist.

South Africa’s trade relationship with the US has been a key source of foreign revenue, with exports valued at more than US$15 billion annually, according to official statistics.

Officials in Pretoria have said they aim for a settlement that protects jobs in export-dependent industries while addressing American trade demands.

Negotiations are expected to continue in the coming weeks, although it remains unclear how quickly the US will respond to the latest proposal.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates