South Africa, U.S. edge closer to new tariff agreement

SOUTH AFRICA – South Africa and the United States are moving closer to a new trade agreement that could lower tariffs and safeguard thousands of local jobs, according to Trade Minister Parks Tau.

Speaking during a trade and investment event in the Drakensberg on Saturday, Tau said both countries were “on the verge of negotiating an agreement around tariffs, and how they can be reciprocally beneficial.” He did not provide full details but confirmed that the talks had made progress in recent weeks.

The negotiations follow the decision by the U.S. government in August to impose 30 percent tariffs on South African exports. The move, introduced under the administration of President Donald Trump, has put pressure on key industries such as automotive manufacturing and citrus farming, which depend heavily on the U.S. market.

Tau recently held a meeting in Washington with U.S. Trade Representative Jamieson Greer. He described the discussions as “tough,” saying they covered several sensitive topics, including U.S. concerns about South Africa’s Black Economic Empowerment (BEE) framework. Trump’s earlier claims about an alleged genocide of white Afrikaans farmers were also raised.

“The government will not abandon BEE,” Tau said firmly. “It’s tough discussions, sometimes uncomfortable, and we continue to engage with them and build trust.”

The trade minister emphasized that South Africa remains focused on protecting its economic transformation policies while maintaining open dialogue with the U.S.

Job security and market stability

The potential deal is viewed as crucial for both economies. A successful agreement could provide relief to exporters and ensure continued access for South African goods in one of its largest markets. It could also help maintain stability in sectors that employ thousands of workers.

Local economists say the timing of the deal is significant as the global trade environment faces uncertainty and competition intensifies. “Reducing tariffs would give South African exporters a chance to recover lost ground and protect jobs in sectors that are already under strain,” said a senior trade analyst based in Johannesburg.

Officials from the U.S. Trade Representative’s office have not yet commented on the progress of the talks.

The trade discussions come at a time when South Africa is working to expand its economic partnerships beyond traditional allies. Last month, Tau announced that the country would strengthen its collaboration with African and Asian markets to diversify export destinations and reduce dependence on any single trading partner.

For now, attention remains on Washington, where the final stages of negotiation could shape the future of South Africa’s trade relationship with the U.S. Tau expressed cautious optimism, saying, “We are building a process that is based on fairness and mutual respect.”

If successful, the new agreement could mark a turning point for South Africa’s exporters, giving industries a chance to regain stability and restore confidence in the face of shifting trade policies.

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