US tariff pause ends on 9 July: Tau says what happens now
With the United States (US) tariff pause of 90 days coming to an end on 9 July, there seems to be nothing happening now, but Minister of Trade, Industry and Competition Parks Tau says South Africa is one of the countries that is asking for an extension because there is so little time left.
US President Donald Trump instituted tariffs on goods imported into the US in April, marking the day as 'US Liberation Day'. South Africa got slapped with a 30% tariff, but Trump decided to pause the tariffs for ninety days until 9 July.
President Cyril Ramaphosa paid a quite acrimonious visit to the White House for a meeting with Trump, followed by trade talks between South African ministers and their US counterparts.
Tau said afterwards that the South African delegation submitted a proposal to the US regarding a framework agreement, focusing on issues related to trade and investment. The proposal identified areas for increased trade and access to each party's markets, while illustrating the benefits of keeping channels as open as possible.
ALSO READ: Will Trump's tariffs have major negative effect on South Africa's economy?
Talks about US tariffs in Angola last week
Last week, Zuko Godlimpi, deputy minister of trade, industry and competition (DTIC), met with the US trade representative responsible for Africa, Connie Hamilton, on the sidelines of the United States of America-Africa Summit in Luanda, Angola.
According to a statement from the DTIC, the meeting followed South Africa's submission of a proposed Framework Deal with the US on 20 May 2025, which outlines measures to enhance mutually beneficial trade and investment relations with the US. The submission was immediately followed by Ramaphosa's meeting with Trump on 21 May.
The Framework Deal addresses US concerns relating to issues such as non-tariff barriers, the trade deficit and commercial relations through two-way procurement or importing strategic goods. It also aims to resolve long-standing market access issues of interest to both sides and promote bilateral investments in a mutually beneficial manner.
According to the DTIC, South Africa is also seeking, through the Framework Deal, to have some of the key export products exempted from the Section 232 duties, including cars and car parts, as well as steel and aluminium through tariff rate quotas.
ALSO READ: Tariffs and Agoa: How Parks Tau summarised US-SA trade talks
SA prepared to settle for maximum US tariffs of 10%
South Africa is also seeking the maximum tariff application of 10% as a worst-case situation. The Framework also seeks exemption for small and medium enterprises, counter-seasonal products and products that the US cannot produce itself.
The DTIC says South Africa used the meeting with Hamilton in Luanda to continue to raise its concerns about the impact of the reciprocal tariffs on African countries, especially. 'One of the key issues that emerged from the meeting is that the US is developing a trade-matters template, which will be the basis for its engagements with countries in sub-Saharan Africa.
'The template will be shared as soon as it has gone through the internal approval processes in the US administration. South Africa welcomed this indication and expressed a preparedness to engage with the template once it is finalised.'
Considering this development, including the limited time between now and the deadline for the expiry of the 90-day pause, African countries, including South Africa, have advocated for the extension of the 90-day deadline to enable countries to prepare their proposed deals according to the new template.
ALSO READ: South Africa faces 25% tariff on US car imports, Minister Parks Tau voices concern
Tau says SA would like to resubmit deal for US tariffs
'We believe that South Africa may need to resubmit its Framework Deal in accordance with the new template, and therefore, we expect that the deadline may be shifted,' Rau says.
'We urge the South African industry to exercise strategic patience and not take decisions in haste, and that government will continue to use every avenue to engage the US government to find an amicable solution to safeguard South African interests in the US market.'
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