SA must ride on the new trade winds
Analysts say now is the time for South Africa to remain on good terms with the rest of the world.
The barrage balloon of hot air that is Donald Trump appeared to undergo a significant loss of bombastic pressure this week, backing down in two key areas where he had previously been spitting fire and brimstone.
As the US markets tanked – and those around the world followed suit over his outrageous threatened tariffs of up to 245% on Chinese products – he walked back considerably, promising to 'go easy' on Beijing and that the final tariffs would be much lower than what he originally pitched.
Then he softened his rhetoric about Federal Reserve Bank chair Jerome Powell, who said the tariffs would damage the US economy, which drew a threat from Trump to fire him.
Markets responded positively to those developments, although they are still far from clawing back the trillions wiped off bourses around the world in the wake of Trump's lunacy.
For us in South Africa – a mere bit player in any global drama – the effects of the tariffs will still be significant because whatever happens, it seems our preferential ride on duties through the African Growth and Opportunities Act (Agoa) is over.
ALSO READ: China risks its moral high ground in escalating trade tensions
That means that whatever we export to the US – from cars to fruit – will become more expensive and less competitive.
That could cost thousands of jobs back at home as profitability is reduced.
Now is the time, though, to remain on good terms with the rest of the world, as agricultural economist Wandile Sihlobo says today, so we can up our exports to places other than America.
Also, as Business Leadership CEO Busiswe Mavuso pointed out, government must put in plans to support our motor industry, for which the US is a major market and will be hard hit when Agoa goes.
If we can see this storm approaching, we need to batten down the hatches.
NOW READ: Ramaphosa treads carefully with Mcebisi Jonas appointment
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 hours ago
- IOL News
President Xi Jinping says China, Senegal inject fresh impetus into Global South cooperation
President Xi Jinping meet with Prime Minister of Senegal Ousmane Sonko, who is in China to attend the 2025 Summer Davos Forum, in Beijing. Image: Ding Lin/ Xinhua / Xinhua via AFP China is willing to work with Senegal to strengthen solidarity and cooperation, deepen their comprehensive strategic cooperative partnership, bring more benefits to the two peoples, and inject fresh impetus into China-Africa friendship and Global South cooperation, Chinese President Xi Jinping said on Friday. Xi made the remarks when meeting with Prime Minister of Senegal Ousmane Sonko, who is in China to attend the 2025 Summer Davos Forum, in Beijing. The Chinese president noted that he co-chaired the 2024 Summit of the Forum on China-Africa Cooperation in Beijing with President Bassirou Diomaye Faye last September, leading China-Africa relations into a new phase of jointly building an all-weather China-Africa community with a shared future for the new era. Xi also said that China and Senegal should firmly support each other's independent and self-reliant development paths, strengthen party-to-party and governance exchanges, and continuously consolidate the foundation of political mutual trust. China and Senegal are partners and good brothers on the road to development and revitalization, Xi said, adding that China is willing to work closely with Senegal to implement the 10 partnership actions between China and Africa, carry out more people's livelihood projects, and encourage Chinese enterprises to invest in Senegal's renewable energy, digital infrastructure and other sectors, becoming partners for win-win cooperation. Noting China and Senegal each have their own unique culture, Xi said both countries should take the opportunity of the 2026 China-Africa Year of People-to-People Exchanges to strengthen exchanges in fields such as culture, education, tourism, sports and youth, and bring their peoples closer together, becoming friends of mutual civilizational learning. Both China and Senegal must firmly defend the international system with the United Nations at its core, practice true multilateralism, uphold global governance featuring extensive consultation, joint contributions and shared benefits, and jointly promote world peace, prosperity, and progress, Xi said. Sonko said China is a reliable partner for Senegal, and that the two countries have always respected each other, united in mutual assistance, with stable and resilient bilateral relations and good progress in cooperation in various fields. Senegal firmly adheres to the one-China principle and looks forward to deepening the comprehensive strategic partnership with China, advancing the joint construction of the Belt and Road Initiative, enhancing cooperation in trade, investment, energy and other fields, and contributing to Senegal's economic and social development, Sonko said. Both China and Senegal are members of the Global South with shared values, and Senegal is willing to closely cooperate with China on international and regional issues, firmly becoming China's strategic partner, promoting international fairness and justice, and safeguarding the common interests of the Global South, Sonko added. IOL
The Star
7 hours ago
- The Star
Ramaphosa and Trump to discuss trade relations at G7 Summit
Mashudu Sadike | Published 2 weeks ago President Cyril Ramaphosa is set to meet with US President Donald Trump on the sidelines of the Group of Seven (G7) Summit in Canada this weekend. The meeting will focus on key issues, including the African Growth and Opportunity Act (AGOA) and US-SA tariffs. Ramaphosa's meeting with Trump comes after South Africa submitted a revised framework proposal to the US, aiming to expand trade and investment relations between the two countries. The US imposed tariffs on South African imports in April, with a 90-day pause on reciprocal tariffs of 30% against South African exports. The tariffs were part of a broader set of 'liberation day' tariffs imposed by Trump on all US trading partners. However, they were later reduced to a base rate of 10%, with the expectation that countries would use the 90 days to propose solutions addressing the US's trade deficit concerns. Ramaphosa's meeting with Trump will be his second in about three weeks, following their tense encounter at the White House last month. During their previous meeting, Ramaphosa emphasised the importance of the US's role in the G20 Summit and invited Trump to attend the G20 Leaders' Summit in Johannesburg later this year. Trump agreed to attend, and Ramaphosa sees this as a positive development for bilateral relations. According to sources close to Ramaphosa, the meeting agenda will include discussions on AGOA, providing duty-free access to the US market for some African products. The agreement is set to expire in September, and South Africa is eager to see it renewed. Ramaphosa will also raise concerns about US-SA tariffs, urging the US not to increase them beyond the current 10% if negotiations on a new trade framework are not concluded by July 9. The sources further said the meeting between Ramaphosa and Trump was significant, given the current state of US-SA trade relations. 'The business sector has expressed concerns about the rise of tariffs, and Ramaphosa is under pressure to come up with answers. A successful meeting could help to ease tensions and pave the way for improved trade relations between the two countries,' the source added. Presidency spokesperson Vincent Magwenya did not respond to questions as to what to expect at the upcoming meeting. However, Ramaphosa, while speaking to journalists on Tuesday after he announced the date for the National Dialogue on various issues affecting the country, confirmed that he would be meeting Trump, Canadian Prime Minister Mark Carney, and German Chancellor Friedrich Merz. Ramaphosa said he was invited by Carney, who holds the presidency of the G7, and would also use the opportunity to talk about the G20 Summit to be hosted by South Africa in November, where Trump will take over the presidency. 'We're going to use it as a platform to begin to consolidate what we want to achieve in November when the leaders' summit takes place here (in Johannesburg),' he said. Last month, Ramaphosa and his delegation included Minister of Trade and Industry Parks Tau, Minister in the Presidency Khumbudzo Ntshavheni, Agriculture Minister John Steenhuisen, and International Relations Minister Ronald Lamola. His goals for that meeting included resetting US-SA relations and beginning serious engagement with the US on trade and investment. He emphasised that South Africa did not 'go kowtowing' to the White House but rather took the initiative to engage with the US. 'For us, it's important for us as a nation to reposition ourselves in the very turbulent geopolitical architecture or situation that we have,' Ramaphosa said at the time. Cape Times
Eyewitness News
7 hours ago
- Eyewitness News
Trump hopeful for Gaza ceasefire, possibly 'next week'
WASHINGTON - US President Donald Trump voiced optimism Friday about a new ceasefire in Gaza, as criticism grew over mounting civilian deaths at Israeli-backed food distribution centres in the territory. Asked by reporters how close a ceasefire was between Israel and Hamas, Trump said: "We think within the next week, we're going to get a ceasefire." The United States brokered a ceasefire in the devastating conflict in the waning days of former president Joe Biden's administration, with support from Trump's incoming team. Israel broke the ceasefire in March, launching new devastating attacks on Hamas, which attacked Israel on October 7, 2023. Israel also stopped all food and other supplies from entering Gaza for more than two months, drawing warnings of famine. Israel has since allowed a resumption of food through the controversial US- and Israeli-backed Gaza Humanitarian Foundation, which involves US security contractors with Israeli troops at the periphery. United Nations officials on Friday said the GHF system was leading to mass killings of people seeking aid, drawing accusations from Israel that the UN was "aligning itself with Hamas." Eyewitnesses and local officials have reported repeated killings of Palestinians at distribution centres over recent weeks in the war-stricken territory, where Israeli forces are battling Hamas militants. The Israeli military has denied targeting people, and GHF has denied any deadly incidents were linked to its sites. But following weeks of reports, UN officials and other aid providers on Friday denounced what they said was a wave of killings of hungry people seeking aid. "The new aid distribution system has become a killing field," with people "shot at while trying to access food for themselves and their families," said Philippe Lazzarini, head of the UN agency for Palestinian affairs (UNWRA). "This abomination must end through a return to humanitarian deliveries from the UN, including @UNRWA," he wrote on X. The health ministry in the Hamas-controlled territory says that since late May, more than 500 people have been killed near aid centres while seeking scarce supplies. The country's civil defence agency has also repeatedly reported people being killed while seeking aid. "People are being killed simply trying to feed themselves and their families," said UN Secretary-General Antonio Guterres. "The search for food must never be a death sentence." Medical charity Doctors Without Borders (MSF) branded the GHF relief effort "slaughter masquerading as humanitarian aid." ISRAEL DENIES TARGETING CIVILIANS That drew an angry response from Israel, which said GHF had provided 46 million meals in Gaza. "The UN is doing everything it can to oppose this effort. In doing so, the UN is aligning itself with Hamas, which is also trying to sabotage the GHF's humanitarian operations," the foreign ministry said. Israel's Prime Minister Benjamin Netanyahu rejected a report in left-leaning daily Haaretz that military commanders had ordered troops to shoot at crowds near aid distribution sites to disperse them even when they posed no threat. Haaretz said the military advocate general, the army's top legal authority, had instructed the military to investigate "suspected war crimes" at aid sites. The Israeli military declined to comment to AFP on the claim. Netanyahu said in a joint statement with Defence Minister Israel Katz that their country "absolutely rejects the contemptible blood libels" and "malicious falsehoods" in the Haaretz article. CIVIL DEFENCE SAYS 80 KILLED Gaza's civil defence agency told AFP 80 Palestinians had been killed on Friday by Israeli strikes or fire across the Palestinian territory, including 10 who were waiting for aid. The Israeli military told AFP it was looking into the incidents, and denied its troops fired in one of the locations in central Gaza where rescuers said one aid seeker was killed. Civil defence spokesman Mahmud Bassal told AFP six people were killed in southern Gaza near one of the distribution sites operated by GHF, and one more in a separate incident in the centre of the territory, where the army denied shooting "at all." Another three people were killed by a strike while waiting for aid southwest of Gaza City, Bassal said. Elsewhere, eight people were killed "after an Israeli air strike hit Osama Bin Zaid School, which was housing displaced persons" in northern Gaza. MILITANTS ATTACK ISRAELI FORCES Meanwhile, Hamas's armed wing, the Ezzedine Al-Qassam Brigades, said they shelled an Israeli vehicle east of Khan Yunis in southern Gaza on Friday. The Al-Quds Brigades, the armed wing of Hamas-ally Palestinian Islamic Jihad, said they attacked Israeli soldiers in at least two other locations near Khan Yunis in coordination with the Al-Qassam Brigades. Hamas's October 7, 2023, attack on Israel that sparked the Gaza war resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally based on official figures. Israel's retaliatory military campaign has killed at least 56,331 people, also mostly civilians, according to Gaza's health ministry. The United Nations considers its figures reliable.
