South Africa claims to not be anti-American and continues to seek a trade agreement with the United States despite President Trump recently threatening to impose additional tariffs.
On Sunday, Trump stated that a country that chooses to align itself with anti‑American BRICS policies would be subject to an additional 10% tariff
South Africa in turn, through the Trade Ministry, pointed out that they aim at a constructive agreement and not confrontation. They asked the U.S. to give an extension of a July 9 deadline to conclude negotiations
The markets responded quickly. The South African rand dropped by almost 1 percent to about 17.7550 against the U.S dollar on Monday.
The country is also struggling with the already existing 31 percent tariff Trump imposed in April
Authorities indicate that they are working on exemptions to major exports such as autos, steel and aluminum in order to secure U.S. LNG imports and agree to a maximum of 10 percent tariff in case of necessity
Economic statistics indicate that with the 10 percent-50 percent tariff sweep, the AGOA benefits are also endangered and a new deal is needed as a matter of urgency
With the deadline of July 9 looming, South Africa stands its ground: there is no anti-American agenda, a will to maintain trade relationships and prevent economic time bombs in overseas countries.
