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The South African central Governor Lesetja Kganyago downplayed the economic fallout. He said that the preliminary assessment is that tariffs and the other uncertainties in the global economy are causing modest damage to growth, while leaving inflation broadly unchanged. He conceded that the U.S. is a large trading partner for South Africa. But it is not as important as Europe, China, or the Southern African Development Community
President Donald Trump’s sweeping new tariffs have taken effect against dozens of countries, including South Africa.
Trump began imposing higher import taxes on numerous countries. The flip side is that his months-long tariff threats have begun to cause visible damage to the US economy.
South Africa’s leader said he spoke with Trump as some African nations hope they could still negotiate tariff rates that threaten to increase unemployment in countries already struggling with high rates of joblessness.
President Cyril Ramaphosa’s office said he and Trump spoke recently ahead of steep 30% tariffs coming into effect on some South African exports to the U.S. on Friday. The statement said the two leaders “undertook to continue with further engagements.
South Africa has said it believes it can still negotiate with the U.S. Trump has been critical of the country for its ambivalent stand and closeness toward China and Russia.
However, the Trump administration said it has stopped aid and assistance to Africa’s most diverse economy over what it calls its anti-white and anti-American policies.
However, the South African central Governor Lesetja Kganyago downplayed the economic fallout. He said that the preliminary assessment is that tariffs and the other uncertainties in the global economy are causing modest damage to growth, while leaving inflation broadly unchanged. He conceded that the U.S. is a large trading partner for South Africa. But it is not as important as Europe, China, or the Southern African Development Community.
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South African neighbors Botswana and Lesotho have also said they still hope to negotiate better tariff rates. Lesotho, a tiny mountainous country, was threatened with a huge 50% tariff rate before it was reduced to 15%. Lesotho feels that 15% is still high for a small country that is dependent on its textile exports. Lesotho fears that the higher tariffs will adversely affect thousands of jobs. The tiny Southern African country manufactures and exports well-known brands like Levi’s to the American market.