News

More struggle ahead with US trade relations amid tariff hikes

Manyane Manyane and Mashudu Sadike|Published

Trade tensions between SA and the US, and represents a direct threat to thousands of South African jobs in key export sectors such as automotive manufacturing, agriculture, and mining.

Image: Armand Hough /Independent Newspapers

A SENIOR  government official within the Department of Trade, Industry and Competition (DTIC) has detailed the last-minute discussions with their US counterparts in efforts to lower or avert Donald Trump’s tariff hikes.

So tense were the discussions that officials sometimes had sleepless nights working to secure a deal, while the government tried to keep the news under wraps to avoid jeopardising the talks.

“Yes, there has been huge pressure and last-minute talks to try to convince the US government to at least cut the tariffs to 15%, but that is a matter the department would have to confirm with you at a later stage if it succeeds.

“Our government has been working on it, but I can tell you now it does not look good because discussions have started late despite the president having indicated that they have made efforts to reach Trump,” the source said.

With a 30% tariff expected to be imposed on South African goods by the US at midnight on Thursday, negotiations were still taking place between the two countries regarding the proposed tariffs.

President Cyril Ramaphosa confirmed that he spoke with Trump on Wednesday.

Presidency spokesperson Vincent Magwenya said the two agreed to continue further engagements on bilateral trade matters.

“President Cyril Ramaphosa held a telephone discussion during the morning of 6 August 2025, with US President Donald Trump on bilateral trade matters.

“The two leaders undertook to continue with further engagements, recognising the various trade negotiations the US is currently involved in. Respective trade negotiating teams will take forward more detailed discussions,” Magwenya said.

Both the DTIC and the Department of International Relations and Cooperation (DIRCO) refused to discuss the matter when approached for comment yesterday.

Political analyst Ntsikelelo Breakfast believes the government was wasting its time as Trump was unlikely to listen or be sympathetic.

“The EU has just signed (an agreement on higher tariffs) and who are we to think we can win if they sign. We are in trouble and Trump is not going to forgive us for taking Israel to the International Court of Justice.

“An attack on Israel is an attack on the US. Even Ramaphosa is wasting his time”, said Breakfast.

Another political analyst, Sethulego Matebesi, said Trump was likely to do what he did during the Oval meeting with Ramaphosa in May.

“Yes, he will provide Ramaphosa with a platform to engage but he will definitely not do as South Africa indicates or requests. I don’t think he will change his tone because all factors that led to his decision have not been addressed, from an American point of view South African stands against Israel,” he said.

Cape Times