Latest news with #US-SouthAfricaBilateralRelationsReviewAct
IOL News
07-07-2025
- Business
- IOL News
Rand weaker on Trump's BRICS tariff threat
Trump warned that nations aligning with BRICS or adopting anti-American policies would face an extra 10% duty. The rand weakened on Monday as markets digested renewed geopolitical risk sparked by US President Donald Trump's latest move to target BRICS-aligned countries with additional tariffs. Trump extended the deadline for new trade tariffs to August 1 and warned that nations aligning with BRICS or adopting anti-American policies would face an extra 10% duty. The fresh threat unsettled emerging markets and hit sentiment across global trading floors. 'Global markets opened the week on edge as President Trump reignited trade tensions ahead of the July 9 tariff deadline,' said Bianca Botes, director at Citadel Global. 'While only Britain, China, and Vietnam have struck deals, a dozen nations are expected to receive tariff letters starting today.' Currency strategist at TreasuryONE, Andre Cilliers, said the announcement put pressure on risk-sensitive currencies. 'BRICS currencies, along with EM markets, have come under pressure this morning with the rand weakening.' By mid-morning, the local unit had slipped to R17.71 to the dollar, from R17.50 last week Thursday. South Africa's political alignment is also in the spotlight. 'South Africa-US relations remained strained with the introduction of the US-South Africa Bilateral Relations Review Act in Congress,' Cilliers noted. The legislation is set to examine South Africa's foreign relations, particularly with China and Russia, as well as alleged human rights violations, he said.
Daily Maverick
20-05-2025
- Business
- Daily Maverick
Ramaphosa's meeting with Trump is a last-gasp chance to reset SA-US relations
Much like bankruptcy, the diplomatic relationship between the US and South Africa deteriorated gradually, and then suddenly. Ambassador Reuben Brigety's explosive Lady R allegations in May 2023, followed by a bipartisan markup of the US-South Africa Bilateral Relations Review Act in Congress in March 2024, were the first in a litany of signals that the relationship was in distress, and South Africa's continued Agoa eligibility was no longer guaranteed. For two years, the US warned our government that it was flying too close to the wind, and that actions would have consequences. In the absence of any tangible attempt by either the Presidency or the Department of International Relations and Cooperation (Dirco) to rebuild trust, the Democratic Alliance (DA) stepped into the vacuum. Over the past two years, the DA led four high-level outreach missions to Washington, DC, meeting with the National Security Council, congressional leaders, State Department officials, think tanks and business leaders. Our message was clear: the DA believes in a strong, principled and mutually beneficial partnership with the US, grounded in an unwavering commitment to our shared democratic ideals. Thanks to this proactive engagement, the DA enjoys considerable goodwill in Washington today. There is a thorough understanding that we are a party committed to the rule of law, constitutional democracy and pro-market economic reforms, and that we will hold the line within the GNU. But goodwill towards the DA as a partner in a multiparty coalition government is not enough to mend what the ANC has broken over so many decades. Pretoria's downgrade of Taiwan's liaison office, its litigation against Israel at the International Court of Justice, public support for BRICS+ dedollarisation, equivocation on Russian President Vladimir Putin's war of aggression in Ukraine, deepening ties with Iran, and hobnobbing with regional despots in Mozambique and Zimbabwe highlight a foreign policy that continues to be guided by the ANC's liberation-era allegiances, at the expense of the nation's strategic priorities. In the absence of corrective action, warnings finally gave way to consequences in January this year, when President Donald Trump returned to the White House. The abrupt termination of life-saving Pepfar funding, the suspension of USAID programmes, a barrage of punitive tariffs and a freeze on US participation in G20 forums followed. While aid cuts to South Africa were not unique, Trump's allegations of arbitrary land confiscations, targeted racial discrimination and genocidal farm attacks sent an incisive shot across the bow, leaving the nation reeling and sending markets into freefall. National security The America First trade policy, reinvigorated under Trump, explicitly links trade with national security. Through a raft of executive orders, the Oval Office revealed that it was no longer prepared to overlook South Africa's increasing alignment with the US's strategic rivals, which actively undermine US national security interests. In 2024, South Africa exported R157-billion worth of goods to the US, with R76-billion of this trade derived from Agoa. By contrast, South Africa exported goods worth just R5.4-billion to Russia and a mere R350-million to Iran. The strategic importance of our relationship with the US could not be clearer. Our nation simply cannot afford to lose R76-billion worth of preferential market access that sustains job-rich supply chains that cannot be replaced elsewhere. Given the economic malaise South Africa already faces, meetings in Washington this week ultimately come down to jobs and growth. When President Cyril Ramaphosa meets with Trump on Wednesday, 21 May, he must begin by acknowledging that denial is not a strategy and that actions have consequences. In leading this charge, he must give an unequivocal assurance that South Africa values its relationship with the US and is willing to take concrete steps to rebuild the partnership. Our President must present a serious, reform-minded South Africa — one that is ready to return to the table as a reliable partner to the US and the free world. US investors and policymakers need to hear a clear commitment to market-friendly policies, the rule of law, protection of property rights and meaningful reforms to reverse the damage done by BBBEE excesses and regulatory overreach. An assurance must be given that moving forward, South Africa's foreign policy will be guided by the principles of genuine non-alignment, peace, human rights and multilateralism, rather than outdated ideological loyalties to the ANC's fraternal allies. As Ramaphosa navigates Pennsylvania Avenue this week, he faces a defining choice: reset or rebuke. For South Africa's sake, he must choose wisely. DM
