Latest news with #MakeAmericaWealthyAgain
The Citizen
10-07-2025
- Business
- The Citizen
Why South Africa must act fast after Trump's tariff blow
While the 30% tariff is a tough pill to swallow, South Africa must stop reacting to global trade shocks and start preparing for them. US President Donald Trump holds a signed executive order after delivering remarks on reciprocal tariffs during an event in the Rose Garden entitled 'Make America Wealthy Again' at the White House in Washington, DC, on April 2, 2025. Picture: Saul Loeb / AFP The decision by US President Donald Trump to impose a 30% tariff on certain South African imports is more than a trade technicality – it's a blow to an already fragile economic relationship. For many South Africans, especially those in agriculture, manufacturing and mining, this move feels like a punch to the gut. But while the tariff hike – which takes effect on 1 August – is a setback, it should also serve as a wake-up call for South Africa to reassess its global trade strategy and take decisive, calculated action. Let's be clear: the US is within its rights to protect its industries, but the rationale behind this tariff is not clear. Some say it's about trade imbalances; others suggest it's tied to South Africa's non-aligned stance on global conflicts, especially the Russia-Ukraine war, as well as its affiliation with the BricsPlus bloc. Others say this action is less about trade and more about a show of power by the Trump administration. Whatever the reason, the implications are real. Jobs are on the line, exports are at risk and investor confidence is under pressure. In practical terms, South African goods entering the US market are now significantly more expensive. That citrus farmer in Limpopo or the steel manufacturer in Gauteng suddenly find themselves priced out of a crucial market. ALSO READ: Where Trump's tariffs will hurt most For a country with already high unemployment and limited fiscal space, this couldn't have come at a worse time. But despair is not a strategy. South Africa has options – and it must act fast. The global reality is that the aggressive US tariff policy is creating a fragmented world trading system that further elevates economic uncertainty. While there is a great deal of fear psychology about just now, South Africa is not without remedies. First, Pretoria must reopen immediate diplomatic channels with Washington. This is not the time for pride or passive commentary. South Africa must make the case that it remains a vital, responsible economic partner and deserves reconsideration or at least clarification. As a small open economy, it remains essential that bilateral negotiations must continue to stabilise and consolidate future US-SA investment and trade relations. Second, the government should not hesitate to take the matter to the World Trade Organisation if the tariffs appear to violate established trade norms. We can't let precedent be set without challenge. Third, this is a golden opportunity to double down on the African Continental Free Trade Area. By boosting trade within Africa, South Africa can reduce its dependence on volatile external partners. ALSO READ: Wait-and-see to Trump's hardline Why fight for crumbs at someone else's table when we can help set our own? We also need to diversify aggressively. Our overreliance on Western markets, especially the US, leaves South Africa vulnerable. South Africa should strengthen ties with Europe, Asia, the Middle East and fellow Brics countries. New trade deals, expanded market access and regional value chains must become central to our economic diplomacy. Lastly, government support is essential. Industries directly hit by the tariff hike must not be left to weather the storm alone. Targeted relief, export incentives and skills development programmes can cushion the blow and maintain momentum. Collaboration between government and the private sector to accelerate the identification of alternative markets must continue. The 30% tariff is a tough pill to swallow, but it also offers a moment of clarity. South Africa must stop reacting to global trade shocks and start preparing for them. In doing so, we can turn a trade crisis into a turning point for a smarter, more resilient economic future. NOW READ: Ramaphosa disputes Trump's 30% tariff claim as 'not accurate'
The Citizen
09-07-2025
- Business
- The Citizen
Wait-and-see to Trump's hardline
SA's cautious approach to Trump's tariff threats is wise—but industries should prepare for real economic fallout. US President Donald Trump holds a signed executive order after delivering remarks on reciprocal tariffs during an event in the Rose Garden entitled 'Make America Wealthy Again' at the White House in Washington, DC, on April 2, 2025. (Photo by SAUL LOEB / AFP) When the hostage taker is ranting and waving around a loaded gun, the softly-softly approach is probably the best. And so it is with US President Donald Trump who, despite his supposed hardline stance on tariffs, has left a lot still hanging in the air. That is why some in South Africa are adopting a waitand-see attitude to Trump's latest communication that the threatened tariff of 30% will go ahead on all goods imported into the US from South Africa. Nothing much has changed since earlier announcements and Trump's flawed take on countries like SA 'exploiting' the US, because there is a trade imbalance, is still there. Experts say Trump's contention that our country – and most of the rest of the world – imposes unfair trade restrictions on the US is unfounded – and that the whole tariff regime proposed by Trump is merely an exercise in global power politics. ALSO READ: Trump's new 30% tariff less about trade and more about power Already, steel, aluminium and vehicle exports from this country to America have been hit with a 25% tariff, much like that imposed on other similar producers around the world. That has led to valid concerns that locally based car assemblers who export to the US, such as BMW and Mercedes-Benz, could be forced to cut back production and retrench workers. Mercedes has already shut down its plant in East London for some weeks for what it says is plant maintenance… but the connection is obvious. Citrus exporters in the Western and Northern Cape, who sell most of their produce in the US, will also probably be priced out of the market there. They could, in turn, dump the produce on their own domestic market, which would be good for consumers but bad for the sector at large. ALSO READ: Ramaphosa disputes Trump's 30% tariff claim as 'not accurate' While we're waiting and seeing, it's not a bad idea to hedge our bets and explore markets other than the US.
UPI
07-07-2025
- Business
- UPI
Trump announces 25% tariffs on Japan, South Korean imports
President Donald Trump looks at a list of tariffs to be charged as he announces tariffs on nearly all U.S. trading partners during a "Make America Wealthy Again" event in the Rose Garden of the White House on April 2. One week later he paused reciprocal tariffs until July 9. File Photo by Bonnie Cash/UPI | License Photo July 7 (UPI) -- President Donald Trump on Monday informed Japan and South Korea that 25% tariffs will be imposed starting Aug. 1 on most goods sent to the United States. Trump sent letters to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung informing them of the new duties. He shared the letters on Truth Social on Monday afternoon. After the announcement, American stocks tumbled. The Dow Jones Industrial Average was down as much as 530 points, or 1.2%; the S&P 500 slumped 0.87% and the tech-dominant Nasdaq Composite was 0.9% lower. Setting record highs Thursday were the S&P at 6,279,35 and Nasdaq at 20,624.51. DJIA that day reached 44,828.53, below the record 45,014.04 on Dec. 4. U.S.-listed Japanese automakers Toyota, Nissan and Honda dropped up to 7.5%. Korea's Kia was half a percent down and Hyundai was up about 1% with cars mostly made in the United States. American companies also produce cars from other countries and import parts. The U.S. president had imposed a Wednesday deadline for nations to negotiate better trade deals. On April 2 on "Declaration Day," he announced 10% across-the-board baseline tariffs on 90 trading partners and harsher ones for the worst offenders. One week later, he pushed the deadline back until July 9 for the reciprocal duties. Besides Japan and South Korea, other nations are bracing for higher tariffs, including the 27 countries in the European Union. USA Today reported as many as 100 letters could go out to nations. The original reciprocal tariffs were 24% for Japan and 25% for South Korea. The letters to the Asian nations state that the 25% tariffs are separate from sector-specific duties on key product categories. "Goods transshipped to evade a higher Tariff will be subject to that higher Tariff," Trump said. That refers to moving goods to an interim country before their final shipment to the United States. The letters say that the higher tariffs are necessary because the other nations are taking advantage of the United States. "Please understand this 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump wrote to both countries. In 2024, the U.S. had a $68.5 billion goods deficit with Japan and a $66 billion with South Korea, according to the Office of the United States Trade Representative. Trump also warned that the rates could be higher if they impose retaliatory duties. "As you aware, there will be no Tariff if Korea, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely -- in other words, in a matter of weeks," Trump wrote to South Korea's president. Trump on Monday threatened nations that support BRICS nations -- Brazil, Russia, India and China -- would be slapped with an additional 10% tariff. The Trump administration has been negotiating with nations. Deals have been announced with Great Britain, China and Vietnam. For Britain, there is a 10% baseline tariff on most goods but an exemption for 50% tariffs on steel and aluminum on most other countries. Instead, it is 25%. Britain was originally to be imposed only the 10% rate. U.S. tariffs on British car imports and auto parts will be reduced to 10% for 100,000 cars. In China, there is a 30% tariff on most Chinese imports, with exceptions on smartphones and computers. Originally the tariff on most goods was to be 134%. In Vietnam, imports are subject to a 10% tariff with products originating from third countries shipped to the United States in Vietnamese ports increased to 40%. The original reciprocal was 46%.
Daily Tribune
06-07-2025
- Business
- Daily Tribune
Trump Says ‘Probably 12' Tariff Letters Being Sent Out Tomorrow
AFP | Morristown, United States US President Donald Trump said Friday that he had signed 12 trade letters to be sent out next week ahead of an impending deadline for his tariffs to take effect. 'I signed some letters and they'll go out on Monday, probably 12,' Trump told reporters aboard Air Force One, adding that the countries the letters would be sent to will be announced on the same day. ![U.S. President Donald Trump displays a signed executive order imposing tariffs on imported goods during a 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House in Washington, DC, on April 2, 2025.] The tariffs were part of a broader announcement in April, where Trump imposed a 10 percent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days. His comments come days before steeper duties — which the president said Thursday would range between 10 and 70 percent — are set to take effect on dozens of economies, from Taiwan to the European Union. But he swiftly paused the hikes until July 9, allowing for trade talks to take place. Countries have been pushing to strike deals that would help them avoid these elevated duties. So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products. As his July 9 deadline approaches, Trump has repeatedly said he plans to inform countries of US tariff rates by sending them letters. Aboard Air Force One on Friday, Trump said sending notices would be much easier than 'sitting down and working 15 different things.' He added: 'You know, with the UK, we did that. And it was great for both parties. With China, we did that, and I think it's very good for both parties.' But he said it was 'much easier to send a letter saying, 'Listen, we know we have a certain deficit, or in some cases a surplus, but not too many. And... this is what you have to pay, if you want to do business (with) the United States.''
IOL News
02-07-2025
- Business
- IOL News
Deal or no deal: What happens with Trump's July tariff deadline?
President Donald Trump displays a signed executive order imposing tariffs on imported goods during a 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House in Washington, DC Image: ANDREW HARNIK / GETTY IMAGES NORTH AMERICA / AFP A week before US President Donald Trump reimposes steep tariffs on dozens of economies, including the EU and Japan, many are still scrambling to reach a deal that would protect them from the worst. The tariffs taking effect July 9 are part of a package Trump imposed in April citing a lack of "reciprocity" in trading ties. He slapped a 10% levy on most partners, with higher customized rates to kick in later in countries the United States has major trade deficits with. But these were halted until July to allow room for negotiations. Analysts expect countries will encounter one of three outcomes: They could reach a framework for an agreement; receive an extended pause on higher tariffs; or see levies surge. 'Framework' deals "There will be a group of deals that we will land before July 9," said Treasury Secretary Scott Bessent last Friday on CNBC. Policymakers have not named countries in this group, although Bessent maintains that Washington has been focused on striking deals with about 18 key partners. "Vietnam, India and Taiwan remain promising candidates for a deal," Asia Society Policy Institute (ASPI) vice president Wendy Cutler told AFP. Without a deal, Vietnam's "reciprocal tariff" rises from the baseline of 10% to 46%, India's to 26% and Taiwan's to 32%. Josh Lipsky, international economics chair at the Atlantic Council, cited Indian negotiators' extension of their US trip recently in noting that it "seems like a frontrunner." "Japan was in that category, but things have set back a little," Lipsky said, referring to Trump's criticism Monday over what the president called Japan's reluctance to accept US rice exports. The deals, however, will unlikely be full-fledged trade pacts, analysts said, citing complexities in negotiating such agreements. Since April, Washington has only announced a pact with Britain and a deal to temporarily lower tit-for-tat duties with China. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Extended pause Bessent has also said that countries "negotiating in good faith" can have their tariffs remain at the 10% baseline. But extensions of the pause on higher rates would depend on Trump, he added. "With a new government, (South) Korea looks well positioned to secure an extension," Cutler of ASPI said. Lipsky expects many countries to fall into this bucket, receiving an extended halt on higher tariffs that could last until Labor Day, which falls on September 1. Bessent earlier said that Washington could wrap up its agenda for trade deals by Labor Day, a signal that more agreements could be concluded but with talks likely to extend past July. Tariff reimposition For countries that the United States finds "recalcitrant," however, tariffs could spring back to the higher levels Trump previously announced, Bessent has warned. These range from 11% to 50%. Cutler warned that "Japan's refusal to open its rice market, coupled with the US resistance to lowering automotive tariffs, may lead to the reimposition of Japan's 24% reciprocal tariff." Trump himself said Tuesday that a trade deal was unlikely with Japan and the country could pay a tariff of "30%, 35%, or whatever the number is that we determine." Lipsky believes the European Union is at risk of having tariffs snap back to steeper levels too -- to the 20% unveiled in April or the 50% Trump more recently threatened. An area of tension could be Europe's approach to digital regulation. Trump recently said he would terminate trade talks with Canada -- which is not impacted by the July 9 deadline -- in retaliation for the country's digital services tax, which Ottawa eventually said it would rescind. This week, EU trade chief Maros Sefcovic is in Washington in a push to seal a trade deal, with the EU commission having received early drafts of proposals that officials are working on. AFP
