S Africa eyes new markets after US tariffs: President
South Africa is seeking new markets in Africa and Asia as it negotiates with the United States over looming 30-percent trade tariffs, which could cost around 30,000 jobs, officials said Monday.
Government ministers expressed frustration with the United States over the tariff—among those due to take effect against several countries later this week—saying South African exports do not compete with US industry and were only a fraction of that country's total imports.
The 30-percent tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the United States are in tatters over a range of domestic and international policies. 'Our foremost priority is protecting our export industries,' President Cyril Ramaphosa said in his weekly newsletter.
'We will continue to engage the US in an attempt to preserve market access for our products. We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade,' he said.
The United States is South Africa's second-largest trading partner by country after China. The tariffs will in particular hit South Africa's agriculture, automotive and textiles sectors, officials said, although 35 percent of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals.
The impact on growth depends on various factors, including the sourcing of alternative markets, Foreign Minister Ronald Lamola said in a statement. He cited forecasts that the impact may shave 0.2 percent off growth, which was only around 0.1 percent in the first quarter of this year.
The South African Reserve Bank last week warned that the US levy could cost 100,000 jobs, with unemployment already at more than 30 percent. But trade department director general Simphiwe Hamilton told reporters Monday their estimate was that approximately 30,000 jobs could be affected.
In a bid to avert the high tariff, South Africa has offered to import US liquefied natural gas and some US agricultural products, as well as invest in its mining and metals-recycling industries. Pretoria is focused on negotiations for a new deal despite the 'very extreme provocation' on the part of the United States, Lamola told reporters.
The 30-percent tariff was 'inscrutable' considering that imports from South Africa only represented 0.25 percent of total US imports, the minister said. 'Moreover, South Africa poses no trade threat to the US economy nor its national security,' he said, arguing the imports supported US industry and did not compete with it.
An example was that South African agriculture exports were 'counter-seasonal' and so filled gaps in the US market without replacing domestic produce, he said.
Pretoria's plummeting ties with Washington and failure to reach a new trade deal has been heavily criticized at home, including by some of the parties in the coalition government who have accused Ramaphosa and his team of diplomatic missteps. On top of disagreements over a range of issues, including South Africa's case accusing Israel of genocide in Gaza at the International Court of Justice, Washington in March expelled Pretoria's ambassador after he criticized Trump's Make America Great Again (MAGA) movement.
In his newsletter, Ramaphosa said the government has established a support desk that will help exporters and producers explore alternative markets in the rest of Africa, Asia and the Middle East.
It will also push forward with plans for a free-trade area for the African continent, he said.
The United States announced last week 15-percent tariffs on exports from several sub-Saharan countries, including the export-reliant small mountain kingdom of Lesotho, which had initially been threatened with 50-percent tariffs.
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Qatar Tribune
13 hours ago
- Qatar Tribune
S Africa eyes new markets after US tariffs: President
Agencies South Africa is seeking new markets in Africa and Asia as it negotiates with the United States over looming 30-percent trade tariffs, which could cost around 30,000 jobs, officials said Monday. Government ministers expressed frustration with the United States over the tariff—among those due to take effect against several countries later this week—saying South African exports do not compete with US industry and were only a fraction of that country's total imports. The 30-percent tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the United States are in tatters over a range of domestic and international policies. 'Our foremost priority is protecting our export industries,' President Cyril Ramaphosa said in his weekly newsletter. 'We will continue to engage the US in an attempt to preserve market access for our products. We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade,' he said. The United States is South Africa's second-largest trading partner by country after China. The tariffs will in particular hit South Africa's agriculture, automotive and textiles sectors, officials said, although 35 percent of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals. The impact on growth depends on various factors, including the sourcing of alternative markets, Foreign Minister Ronald Lamola said in a statement. He cited forecasts that the impact may shave 0.2 percent off growth, which was only around 0.1 percent in the first quarter of this year. The South African Reserve Bank last week warned that the US levy could cost 100,000 jobs, with unemployment already at more than 30 percent. But trade department director general Simphiwe Hamilton told reporters Monday their estimate was that approximately 30,000 jobs could be affected. In a bid to avert the high tariff, South Africa has offered to import US liquefied natural gas and some US agricultural products, as well as invest in its mining and metals-recycling industries. Pretoria is focused on negotiations for a new deal despite the 'very extreme provocation' on the part of the United States, Lamola told reporters. The 30-percent tariff was 'inscrutable' considering that imports from South Africa only represented 0.25 percent of total US imports, the minister said. 'Moreover, South Africa poses no trade threat to the US economy nor its national security,' he said, arguing the imports supported US industry and did not compete with it. An example was that South African agriculture exports were 'counter-seasonal' and so filled gaps in the US market without replacing domestic produce, he said. Pretoria's plummeting ties with Washington and failure to reach a new trade deal has been heavily criticized at home, including by some of the parties in the coalition government who have accused Ramaphosa and his team of diplomatic missteps. On top of disagreements over a range of issues, including South Africa's case accusing Israel of genocide in Gaza at the International Court of Justice, Washington in March expelled Pretoria's ambassador after he criticized Trump's Make America Great Again (MAGA) movement. In his newsletter, Ramaphosa said the government has established a support desk that will help exporters and producers explore alternative markets in the rest of Africa, Asia and the Middle East. It will also push forward with plans for a free-trade area for the African continent, he said. The United States announced last week 15-percent tariffs on exports from several sub-Saharan countries, including the export-reliant small mountain kingdom of Lesotho, which had initially been threatened with 50-percent tariffs.
Qatar Tribune
2 days ago
- Qatar Tribune
Trump's global tariffs take shape, but consumer impact remains unclear
Agencies American businesses and consumers woke up Friday to find the contours of President Donald Trump's foreign trade agenda taking shape but without much more clarity on how import taxes on goods from dozens of countries would affect them. Late Thursday, Trump ordered new tariff rates for 66 countries, the European Union, Taiwan and the Falkland Islands. Among them: a 40% tariff on imports from Laos, a 39% tariff on goods from Switzerland and a 30% tariff on South African products. Other trade partners, such as Cambodia, had the tax rates on their exports to the U.S. reduced from levels the president had threatened to impose. Trump postponed the start date for all of the tariffs from Friday until Aug. 7. Wendong Zhang, an associate professor in the Dyson School of Applied Economics and Management at Cornell University, said U.S. consumers may be feeling some relief with the tariff rates announced, since many were lower than Trump initially threatened. Indonesia's rate was 19%, for example, down from the 32% Trump announced last spring. But tariffs are a tax, and U.S. consumers are likely to foot at least part of that bill. 'Prices are still going up, they just won't go up as much as in the worst-case scenario,' Zhang said. Companies are dealing with tariffs in various ways. Many automakers appear to be swallowing tariff costs for now. But the world's largest eyewear maker, EssilorLuxottica, said it raised U.S. prices due to tariffs. The maker of Ray-Bans grinds lenses and sunglasses in Mexico, Thailand and China and exports premium frames from Italy. Here's what we know about the tariffs and what their impact will be on U.S. consumers: President Donald Trump unveiled sweeping import taxes on goods coming into the U.S. from nearly every country in April. He said the tariffs were meant to boost domestic manufacturing and restore fairness to global trade. A week later, Trump announced a 90-day pause on the tariffs but did leave in place a 10% tax on most imports. In early July, Trump began sending letters to dozens of countries saying higher tariffs would go into effect Aug. 1 unless they reached trade deals. The administration announced new rates for dozens of countries on Thursday but delayed their implementation until Aug. 7. In the meantime, Trump announced a 35% tariff on imports from Canada would take effect Friday. But Trump delayed action on Mexico and China while negotiations continue. Other duties not specific to countries also remained in place Friday, like a 50% tariff on imported aluminum and steel announced in June. The Trump administration has reached deals with the European Union, Japan and South Korea that put 15% tariffs in place. A deal with the Philippines puts 19% tariffs in place while a deal with Vietnam imposes a 20% levy. On Wednesday, Trump announced a 25% tariff on goods from India and a 50% tariff on goods from Brazil. The U.S. Commerce Department said Thursday that prices rose 2.6% in June, up from an annual pace of 2.4% in May and higher than the Federal Reserve's goal of 2%. Many goods that are heavily imported saw price increases, including furniture, appliances and computers. Zhang, the Cornell economist, said U.S. consumers could see higher prices in the coming months for appliances and other products that contain a large amount of steel and aluminum. Toys, kitchenware, electronics and home goods could also see price spikes. But Zhang said a 15% tariff doesn't mean prices will immediately rise by 15%. Companies were aware of the tariff deadlines and have been trying to stockpile goods and take other measures to mitigate the impacts. Zhang noted that Trump's trade deals often contain specific provisions designed to boost U.S. exports. The agreement with the European Union, for example, calls for European companies to purchase $750 billion worth of natural gas, oil and nuclear fuel from the U.S. over three years. Zhang said semiconductor firms and military contractors could also see bumps in trade. Some U.S. farmers could also see a potential upside, Zhang said. As part of its trade deal, Vietnam agreed to purchase $2 billion in U.S. agricultural products over three years, including corn, wheat and soybeans, according to the International Trade Council. But Zhang cautioned that agricultural agreements tend to be short-lived. Over the longer term, the uncertainty over tariffs could cause countries like China to back away from U.S. agricultural markets and look for other partners, Zhang said. The tariffs will almost certainly result in higher food prices, according to an analysis released this week by the nonpartisan Tax Foundation. The U.S. simply doesn't make enough of some products, like bananas or coffee, to satisfy demand. Fish, beer and liquor are also likely to see price hikes, the foundation said. Conagra Brands, the maker of Hunt's canned tomatoes, Reddi-wip and other brands, said in July that tariffs – particularly the 50% tax on imported aluminum and steel -- will add $200 million annually to its costs. The company said it's shifting some of its suppliers but also expects to raise prices. Ben Aneff, managing partner at Tribeca Wine Merchants and president of the U.S. Wine Trade Alliance, said that beginning Friday shoppers will see prices rise 20% to 25% at his store and others because of tariffs and the declining value of the dollar. 'Nobody can afford to eat the tariff. It gets passed on,' Aneff said. Aneff said shoppers haven't felt the impact from higher duties until now because distributors and retailers accelerated shipments from France and other European countries earlier in the year. But with the tariff rate bumping to 15%, Aneff expects European wine prices to jump 30% in September. Ninety-seven percent of clothing and shoes sold in the U.S. are imported, primarily from Asia, according to the American Apparel & Footwear Association said. China leads the pack, but companies have been shifting more of their sourcing to Vietnam, Indonesia and India. And prices are already on the rise. Steve Lamar, president and CEO of of the trade group, declined to estimate price increases because he said the situation continues to be in flux. He also said shoppers will see higher costs from tariffs play out in other ways starting this fall. Companies may drop products because they're too expensive or reduce promotions, he said. Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, estimates prices for shoes are starting to go up for the back-to-school shopping season. He estimates price increases in the 5% to 10% range. Lululemon said in June that price increases will be modest and apply to a small portion of its assortment, while Ralph Lauren said it would be hiking prices for this fall and next spring to offset tariffs. Bjorn Gulden, CEO of Germany-based Athletic wear giant Adidas, told investors Wednesday that the company is reviewing different price increases for products for the U.S. but no decision has been made. 'Tariffs (are) nothing else than a cost,' he said. 'And regardless of what people are saying, you can't just throw a cost away. It's there.'
Qatar Tribune
5 days ago
- Qatar Tribune
Embassy of Venezuela pays tribute to national heroes who struggled for nation's freedom
Ashraf Siddiqui HE Carlos Jose Mata Figueroa, ambassador of the Bolivarian Republic of Venezuela to the State of Qatar, recently delivered a keynote address commemorating the historic contributions of Venezuela's leaders in their pursuit of national sovereignty, social justice, and regional integration. The tribute marked a significant moment of reflection on the country's enduring commitment to independence, democracy, and multipolar international cooperation. The ceremony was attended by HE Jassem Mohammed Al Asmakk, Director of the American Affairs at the Ministry of Foreign Affairs of the State of Qatar, as well as a number of ambassadors, officials, and distinguished guests. In his solo address on the occasion, Ambassador Carlos highlighted pivotal moments in Venezuela's recent history, beginning with the nationalization of the Orinoco Oil Belt. He emphasized the late President Hugo Chávez's strategic vision in diversifying Venezuela's global partnerships to counter external interference, forging alliances with countries such as China, Russia, Turkey, Iran, Vietnam, Korea, Arab nations, and the African continent—all part of a vision for a multipolar world order. Ambassador Carlos recalled the attempted coup of April 11, 2002, during which President Chávez was illegally ousted and detained for 48 hours. His return to power, facilitated by the Bolivarian Armed Forces and the Venezuelan people, was portrayed as a pivotal defense of constitutional democracy. He also highlighted Chávez's efforts in promoting regional unity and integration through key initiatives such as: The Bolivarian Alliance for the Peoples of Our America - Peoples' Trade Treaty (ALBA-TCP), 2004 Petrocaribe, 2005, Union of South American Nations (UNASUR), 2008 Community of Latin American and Caribbean States (CELAC), 2010 The ambassador paid homage to President Chávez, who passed away on March 5, 2013. His remains rest at the Mountain Barracks in Caracas, a symbolic site of the Bolivarian Revolution. The address also celebrated the electoral victory of President Nicolás Maduro Moros on July 28, 2024, which Ambassador Carlos described as a triumph for the Venezuelan people amid external pressures and economic challenges. The election, he stated, demonstrated the people's choice for peace, sovereignty, and democratic continuity. Ambassador Carlos reported on the recent humanitarian achievement of rescuing seven Venezuelan children previously detained in the United States, as well as the liberation of 252 Venezuelan nationals who had been illegally detained in El Salvador. These developments were portrayed as examples of the government's unwavering commitment to the protection of its citizens abroad. President Maduro, according to the ambassador, reaffirmed his government's intention to recover all remaining Venezuelan children still held in migrant detention centers and condemned the reported abuses perpetrated against migrants. The ambassador also referenced the negotiated release of ten individuals described as foreign agents in exchange for the repatriation of Venezuelan detainees. The address closed with a message of international solidarity and gratitude toward Venezuela's global allies, particularly Russia, China, India, Turkey, Iran, Cuba, Brazil, Qatar, Belarus, and African nations, all considered essential to building a just and multipolar world order. Ambassador Carlos extended special thanks to HH the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, and the Qatari government for their continued support of peace and development efforts. To conclude the ceremony, Ambassador Carlos invoked a Venezuelan military saying, drawing a powerful metaphor of unity and strength: 'One hears the deafening roar of thunder that shakes the earth, and one feels the destructive power of lightning — it is the artillery, in its great yearning for solidarity and support for its fellow arms'. He concluded with a call to solidarity: 'Let us be like thunder. Let us be like lightning. Let us be in solidarity with the peoples of the world who so greatly need us'. Throughout the event, several short videos were presented, including historical footage of former President Hugo Chávez condemning the genocide acts of Zionist Israeli regime and segments addressing international political issues. Guests were treated to traditional Venezuelan snacks like Cachapa with cheese, Arepa with cheese, Arepa Reina Pepiada, Taquinos, and a rare, Papelon with lemon (premium pure sugar-cane juice).
