The intersection of geopolitical, domestic and trade issues best defines the current impasse between South Africa and the United States, and a reset is unavoidable.
South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States. We also want to reiterate that we have no intention of decoupling from the United States either. Our view is that negotiations remain the best tool to deal with the issues that are on the table.
South Africa is not in a unique position as the United States attempts to finalise negotiations with some 185 countries around the world by the 1st of August 2025. We remain committed to the cause as we await substantive feedback from our US counterparts on the final status on our Framework deal.
Our deal featured a number of areas including and not limited to:
- Importing 750-100 petajoules of Liquified Natural Gas for a 10 year period, unlocking $12 billion;
- Agricultural Market Access by simplifying of U.S. poultry exports under the 2016 tariff rate quota and unlock approximately $91m million in trade. In addition, readiness to open market access for blueberries subject to necessary protocols.
- South African firms committed to invest $3.3 billion in U.S. industries such as mining and metals recycling, while both governments agreed to pursue joint investment in critical minerals, pharmaceuticals, and agri-machinery.
- Exemption of specific sectors from reciprocal tariffs to preserve supply-chains e.g. ship building, counter-seasonal agriculture trade, exports from MSMEs of less than $1 million per annum.
As the Department of Trade, Industry and Competition, we have been in a period of intense negotiations with the United States. We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US. Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios.
We have planned for these scenarios and have not sat idle. We are working with other government departments on a response plan which includes a support desk within the dtic. Our response package also focuses on demand side interventions in the impacted industries.
The way forward is clear. President Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial. The dtic has made this issue an apex priority since well before 2 April 2025, and we have centred South Africa and her people as our non-negotiable. Rest assured, we will not waiver in our mission to ensure we make South Africa prosper.
Media Enquiries:
Kaamil Alli – Ministerial Spokesperson
Mobile: +27 82 520 6813
WhatsApp: +27 82 520 6813
E-mail: KAlli@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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OR
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
Follow us on X: @the_dtic
https://www.facebook.com/thedti?mibextid=ZbWKwL
https://www.youtube.com/@thedtic
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