South Africa resilient in face of tariffs, experts say

South African experts have criticized the US tariffs as "disruptive" to global trade and the economy, and said South Africa is showing resilience to the tariffs by expanding South-South trade.

The US recently imposed tariffs on 60 partners which it alleges use forced labor. Countries will face tariffs of between 10 and 12.5 percent.

Mpho Parks Tau, South African minister of trade, industry and competition, said his country will face a 12.5 percent tariff from the US. He said the tariffs will exclude automobiles and auto components, as well as steel and aluminum, which are already subject to other US tariffs. South African products such as macadamia nuts, oranges, tea, spices, seeds, cane sugar, orange and lime juice, syrups, chemicals, critical minerals, platinum group metals and other precious metals and pharmaceuticals will be exempted from the latest tariffs, said Tau.

The South African government will continue to engage with the US with a view to either eliminating or reducing the tariffs, the Department of Trade, Industry and Competition said in a statement.

John Bideri, chairman of the Committee on Trade, Customs and Immigration Matters at the Pan-African Parliament, said the US tariffs are disrupting global trade. He said the committee has deliberated on it and expressed concern over the tariffs because they are bad for business in Africa and globally.

Bideri, who is also a member of the Rwanda Senate, said if tariffs are "created to punish" others, they are not welcome.

"Tariffs are not good for business and trade, especially if they are put in place for political or economic reasons. We should rely on free trade as provided for in the World Trade Organization. If they are negotiated tariffs, they enhance trade within the globe," said Bideri.

He said that African countries or regional economic communities should negotiate tariffs. The African Continental Free Trade Area should help increase intra-Africa trade, which is facing tariffs, said Bideri.

Danson Mungatana, leader of the Kenyan delegation to the Pan-African Parliament, said tariffs are not helping US citizens as they make the goods expensive for them. Mungatana said tariffs have negatively affected global trade.

Mungatana said African countries should increase intra-Africa trade as a response to the tariffs.

Expanding trade

Themba Maseko, head of the University of the Witwatersrand School of Governance, said the South African economy has shown some resilience despite the US measures. He said South Africa should continue to trade with other countries while engaging with the US.

"We have seen trade with the Global South increasing, and the US tariffs did not impact much on our trade with the rest of the world. That resilience is still there, and we have to continue to do what we are doing as a country," said Maseko.

Annabel Bishop, chief economist at Investec, an international banking and asset management company, said in the midst of polarization and geopolitical risks, the South African economy has shown some improvement. She said while South Africa should continue to engage with the US to reduce or remove trade tariffs, it should also explore other markets.

Bishop said there are many opportunities for trade with BRICS partners, including China, India, Brazil and Russia.

The writer is a freelance journalist for China Daily.