South Africa Proposes Trade Deal to Avoid US 30% Tariffs

South African officials unveiled plans to present a revised trade agreement to the United States this week, aiming to avert steep tariffs that threaten to deepen the nation’s unemployment crisis. The proposed deal follows Washington’s decision last week to impose 30% duties on select South African exports, the highest rate applied to any sub-Saharan African country. Government ministers warned the tariffs could eliminate approximately 30,000 jobs in a country where unemployment stands at 33.2%, according to newly released data.

While specifics of the revised proposal remain confidential, Agriculture Minister John Steenhuisen described it as “broad, generous, and ambitious” during a press briefing. He confirmed that Pretoria had finalized measures to boost imports of U.S. poultry, blueberries, and pork, building on prior trade discussions. Trade Minister Parks Tau emphasized South Africa’s goal to prove its exports “do not threaten U.S. industries,” noting that the nation accounts for just 0.25% of America’s total imports. “Our trade relationship is complementary,” he asserted, referencing the U.S. as South Africa’s third-largest trading partner after the EU and China.

The negotiations, however, have extended beyond traditional trade matters. Steenhuisen, a member of the pro-business Democratic Alliance party, expressed surprise that U.S. diplomats criticized domestic policies addressing racial inequities stemming from apartheid. These include land redistribution initiatives and employment equity laws, which President Donald Trump has publicly opposed. “Issues like expropriation without compensation and race-based legislation are now being framed as trade barriers,” Steenhuisen told AFP, suggesting the Trump administration is using tariffs to pressure geopolitical concessions—a tactic he called a “new normal” requiring global adaptation.

This pattern aligns with heightened U.S. trade tensions elsewhere, including punitive tariffs on Brazil and India over ideological disputes. Despite fraying diplomatic relations under Trump’s tenure, South African officials maintain that political disagreements haven’t formally entered the trade talks. Yet Tau acknowledged the unconventional nature of the negotiations, which bypass World Trade Organization (WTO) frameworks. “The WTO rulebook has been set aside,” he said, stressing South Africa’s commitment to safeguarding its sovereignty amid shifting global trade dynamics.

The stakes are particularly high for South Africa’s economy, where sectors reliant on U.S. trade face potential destabilization. With unemployment at its highest level in two decades, analysts warn that the tariffs could disproportionately affect industries already strained by sluggish growth. As both nations navigate this contentious terrain, the outcome may signal how economic power is wielded in an era where trade policy increasingly intersects with domestic governance debates.

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