Latest news with #Tau
IOL News
11 hours ago
- Business
- IOL News
Trump Tariffs: SA throws blueberries into the US trade deal basket as time runs out
In a July 7 statement announcing the latest trade tariff deadline, the White House said, 'Trump is the best trade negotiator in history.' Image: Peter Zay / AFP Overnight, hopes of a trade deal between South Africa and the US were further dashed, as many commentators have already written off any chance of lowering the pending 30% export duty set to take effect on Friday. Speaking on CNBC's Squawk Box late yesterday South African time, US Commerce Secretary Howard Lutnick confirmed that US President Donald Trump's August 1 deadline to impose major tariffs on several trading partners would not be delayed. Lutnick said Trump 'holds all the cards' and has no reason to back down. 'So now the price of a deal with the United States of America is black and white, completely open markets,' he told CNBC. 'He wants to make sure that Americans can sell their goods overseas'. 'So, are there deals on the table for him to consider? Yes,' Lutnick told the news station, adding that Trump 'knows that he can just set the rate and set the price and move on'. This came as Trade, Industry and Competition Minister Parks Tau reiterated late yesterday that South Africa was still working to secure a deal. 'Our view is that negotiations remain the best tool to deal with the issues that are on the table,' Tau said in a statement. Most commentators, however, do not expect a deal to be signed before Friday. Tau said the Department has been engaged in 'intense negotiations' with the US. 'We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US,' he said. Among South Africa's concessions is 'open market access' for blueberries. Yet, Tau conceded that a 'reset' in South Africa's already strained relationship with the US is inevitable. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between the US and South Africa, and a reset is unavoidable,' he said. Earlier this month, dozens of countries received letters from the US President's Office stating that Trump was imposing tariffs to protect America's sovereignty and because of what he described as massive trade deficits. South Africa, however, has disputed his calculations. Trump has also threatened an additional 10% tariff on any country aligning with BRICS nations' policies. 'Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,' he wrote on his Truth Social platform. South Africa has 'no intention of decoupling from the United States,' Tau said, adding that the country had decided not to retaliate. Trump, however, has warned that any retaliation would trigger even higher tariffs. In a July 7 statement announcing the latest deadline, the White House said, 'Trump is the best trade negotiator in history.' IOL Business
Eyewitness News
14 hours ago
- Automotive
- Eyewitness News
Minister Tau says SA diversifying and looking elsewhere to mitigate US trade tariffs
CAPE TOWN – Trade, Industry and Competition Minister, Parks Tau, says South Africa is diversifying and looking elsewhere to mitigate the impact of the United States (US) trade tariffs. He said the tariffs imposed by the Donald Trump administration have already impacted the auto industry, with a 25% tariff on automobiles and parts coming into effect in April and May, respectively. In written Parliamentary replies to questions from Members of Parliament (MPs), Tau said the diversification would focus on countries that South Africa has trade agreements with, including some in South America. Tau said, while the US remains an important trading partner for South Africa, it accounted for just 7% of South African trade in 2024. He said around 40% of South Africa's trade is with Asian countries, 25% with European countries and 20% with other African nations. Tau said in February this year, the us 'imposed section 232 tariffs of 25% on steel and aluminium on the basis that imports of these products threaten US national security'. He said government is now determined to strengthen partnerships in Africa to address business challenges and create a favourable environment for conducting business. According to Tau, the diversification focuses on countries that South Africa has trade agreements in place, including the Southern African Development Community (SADC), African Continental Free Trade Area and the European Economic Partnership Agreement. The country also has a preferential trade agreement with the South American trade bloc comprising Brazil, Argentina, Paraguay and Uruguay.
IOL News
16 hours ago
- Business
- IOL News
South Africa pushes for tariff negotiations with US despite silence from Washington
The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Image: Independent Media Archives South Africa's government has reiterated its commitment to secure a favourable tariff deal with the United States, despite a conspicuous lack of communication from Washington D.C. The looming potential of a 30% levy on South African exports has sparked concern as businesses brace for what could significantly impact trade relations between the two nations. The Department of Trade, Industry and Competition (the dtic) on Tuesday said negotiations remained the best tool to deal with the issues that are on the table. The dtic Minister Parks Tau said South Africa was not in a unique position as the US attempts to finalise negotiations with some 185 countries around the world. Tau said the government remained committed to the cause as it awaited substantive feedback from the US counterparts on the final status on its Framework deal. 'The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable,' Tau said. 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. 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'Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios. We have planned for these scenarios and have not sat idle. 'We are working with other government departments on a response plan which includes a support desk within the dtic. Our response package also focuses on demand side interventions in the impacted industries.' Tau said South Africa's Framework deal to the US featured a number of areas including and not limited to importing 75-100 petajoules of Liquified Natural Gas for a 10 year period, which would unlock $12 billion; agricultural market access by simplifying of US poultry exports under the 2016 tariff rate quota and unlock approximately $91 million in trade. In addition, readiness to open market access for blueberries subject to necessary protocols. Tau said South African firms committed to invest $3.3bn in US industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agrimachinery. The Framework also proposes an exemption of specific sectors from reciprocal tariffs to preserve supply chains such as ship building, counter-seasonal agriculture trade, exports from Micro, Small and Medium Enterprises of less than $1m per annum. 'The way forward is clear. President [Cyril] Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial,' tau said. 'The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper.' Meanwhile, Presidential Special Envoy to North America, Mcebisi Jonas, on Tuesday said there's a pressing need for South Africa to diversify its export markets, moving beyond traditional trading partners to engage with emerging powers in Asia, the Middle East, and Latin America. Speaking at a seminar hosted by the Kgalema Motlanthe Foundation, said the African Continental Free Trade Area has shown promise, yet current crises underscored the need for more robust regional integration efforts to improve economic resilience and collaboration. 'Export diversification is a key imperative that South Africa should take up as part insurance against market concentration, but also as a source of resilience. For South Africa and Africa as a whole, the economic implications of China's growth and consequent reconfiguration of the global economy are somewhat contradictory. China has become a large investor in African development,' Jonas said. 'The USA remains a central player in global development. South Africa's relationship with the US is crucial. And it is not transactional. But based on a long partnership rooted in shared values of democracy, justice, and progress. In the immediate term, South Africa is engaged in negotiations with the US to reach a solution on the tariff impasse. But beyond that, I think there is a conversation going on improving the relations between the two countries.' BUSINESS REPORT
IOL News
6 days ago
- Business
- IOL News
South Africa continues to press the US for trade deal, says Parks Tau
File photo ofTrade, Industry and Competition Minister Parks Tau. Image: GCIS South Africa continued to work tirelessly discussing with its counterparts in the US to keep the trade route open and having submitted the Framework Deal in May, South Africa has signed a condition precedent document with the office of the US Trade Representative, a precursor to finalisation of the negotiations, Minister of Trade, Industry and Competition Parks Tau said in his budget vote. Tau said the collective work of business, organised labour and civil society, in engaging the US Congress is also a key lever in South Africa's toolkit in its approach to ensuring the continued inclusion of South Africa in the Africa Growth and Opportunity Act and to respond to the recently proposed US-South Africa Bilateral Relations Review Act. "Our active engagements with Asia are significantly bearing fruit. We have advanced conversations with China on Green Industrialisation and deepening our industrial supply chains. We have also committed to working with them to beneficiate our critical minerals here at source. This will unlock value in our Special Economic Zones (SEZs) and Industrial Parks as we agree that these dynamic strategic nodes in our country are best placed to drive our reindustrialisation agenda." Tau said. He said the government was also reinvigorating its relationship with Japan through InvestSA and the Japan External Trade Organisation (JETRO). As the looming Carbon Border Adjustment Mechanism (CBAM) alone has the potential to create an almost 1% contraction in GDP on the African continent, South Africa remains firm that the multilateral trading system with the World Trade Organisation and the United Nations at their core, must be preserved until all member states are able to reach their developmental goals, he said. "This is the message we will take to the 14th Ministerial Conference in Cameroon next year. Our announcement on the Clean Trade and Investment Partnership (CTIP) with the EU in March, is to be welcomed by our provinces and municipalities. For one, CTIP will enable us to execute our decarbonisation agenda and maximise the R90 billion facilitation funding that has been initially committed," Tau said. 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. 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Advertisement Next Stay Close ✕ Ad loading Deputy Minister for the Department of Trade, Industry (Dtic) and Competition Zuko Godlimpi said to support and accelerate the participation of black industrialist in the economy, the Industrial Development Corporation (IDC) had in 2025/2026 revised its commitment to a total of R12 billion towards transformation focused funding. Godlimpi said R7.4bn was earmarked for black industrialists, R3.5bn for women-owned businesses and R1.5bn for youth-led enterprises in efforts aspired to reflect a deliberate strategy to transform the ownership and control of productive assets in the economy. "In KwaZulu-Natal, the IDC is supporting SME canegrowers and supporting avocado producers link to export markets. In the North West, a second round of funding is being prepared for black grain producers. In the Eastern Cape we are advancing green hydrogen and agro processing through partnership with local industry to respond better to global market conditions," Godlimpi said. He said other highlights included that in the Free State there was a programme of revitalising the agri infrastructure with the provincial government, in Gauteng through supplier development, business referrals are fueling a strong pipeline for transformative funding, whilst in the Western Cape, there was support for black industrialists in poultry, plastics and solar installations. "In Limpopo, we have a proposed R50 million farming aggregator funding, which is expected to create 400 jobs. In Mpumalanga, the IDC is backing green hydrogen and biofuels brick making and furniture making, with plans afoot for the establishment of a Special Economic Zone," Godlimpi said. He said on the part of the Dtic, out of its R11bn, up from R9.6bn in the 2024/2025 year, 35.15% of the total budget goes to business incentives while infrastructure investments are apportioned 10.2% amounting to R5.2bn investment in the incentive programme. BUSINESS REPORT
TimesLIVE
6 days ago
- Business
- TimesLIVE
Is SA's tough economic climate pushing people to gamble online?
Trade, industry and competition minister Parks Tau has raised alarm about the rise of illegal online gambling in South Africa, saying the National Gambling Board has identified at least 90 offshore-registered gambling websites operating unlawfully in the country. Tau was responding to parliamentary questions from Rise Mzansi MP Songezo Zibi, who pressed the department for answers on how it plans to crack down on unregulated platforms. The concern comes as South Africans continue to feel intense financial pressure. According to the latest DebtBusters Money-Stress Tracker which surveyed more than 27,000 people between May and June, 70% of respondents reported experiencing financial stress, with 91% saying it affects their home life, 73% their work and 73% their health. While the report shows a slight dip in money stress levels compared with previous years, the toll on daily life remains high. With desperation mounting, we want to know: are harsh economic realities pushing South Africans into the arms of illegal gambling sites?
