Government looking for other destinations for SA goods, Ramaphosa says

As US President Donald Trump’s reciprocal tariffs remained paused for 90 days, President Cyril Ramaphosa stated that the government is intensifying the search to diversify destinations for South African goods, products and services.

Trump sent financial markets into a tailspin earlier this month by announcing sweeping import taxes on dozens of trade partners, including South Africa.

The US president imposed a universal 10% baseline tariff on all imports into the US and additional reciprocal tariffs for several other countries, including 30% for South Africa.

Trade between nations

However, on Friday, he abruptly announced a pause on all of them, with the exception of China.

Ramaphosa, writing in his weekly newsletter on Monday, said trade between nations is a vital part of economic progress.

“That is why, as part of our G20 Presidency, South Africa is promoting a trade agenda in which G20 members commit to measures to promote expanded, more inclusive and more sustainable value chains.

“Developing economies such as ours are vulnerable to volatility in international trade. This is particularly the case in the face of unilateral actions and coercive measures that undermine multilateral agreements and the global rules-based trading system,” Ramaphosa said.

ALSO READ: Budget reflects ‘strategic priorities of the GNU’ –Ramaphosa

Diversifying destinations

The president stressed that fair and inclusive trade is important for growth and jobs in South Africa.

“We are deepening relations with countries and regions with which we have regional and bilateral trade agreements that provide preferential trade terms. These include the Southern African Customs Union and the Southern African Development Community Free Trade Area.”

‘Trade must be free’

He said the 2025 budget allocates increased funding to boost manufacturing and agro-processing goods and services, as well as for incentive programmes that strengthen local value chains and open access to key international markets.

“As we undertake all these measures, South Africa will continue to advocate for a level playing field in global trade.

“Trade must remain free, predictable and governed by a rules-based system. This is particularly critical for developing economies, many of which remain locked into the lower end of global value chains,” Ramaphosa said

‘Favourable relations’

Ramaphosa said  South Africa remains committed to maintaining favourable relations with existing trade partners and to forging new trade relationships.

“As government, business and labour, we will continue to deepen our collaboration as we navigate a global trade environment that has become increasingly complex.

 Our ultimate goal is to secure favourable trade terms that advance our national interest, drive inclusive growth and create jobs for the South African people,” Ramaphosa said.

Earlier this month, the Presidency said Trump’s shocking 30% tariffs on South African goods to the US are a barrier to trade and shared prosperity.

ALSO READ: Trump warns China ‘not getting off the hook’ on US tariffs for electronics