Trump Tariffs: South Africa signs framework deal in ongoing US trade talks
The Department of Trade and Industry has confirmed it has signed a condition precedent document with the US
Image: Armand Hough /Independent Newspapers
As the countdown to the US’s planned 30% tariff increase on South African exports edges closer, the Department of Trade and Industry has confirmed it has signed a condition precedent document with the US Trade Representative’s office.
According to the department, the document signed is a condition precedent, serving as a preliminary framework that outlines the necessary steps before a full trade agreement can be finalised.
"We have not signed any substantive agreement yet. The document signed was a precedent condition document," Ministerial spokesperson Kaamil Alli said.
"This is a precursor to the finalizing of the negotiations, which are ongoing".
This comes after US President Donald Trump sent a formal letter to President Cyril Ramaphosa demanding action on trade imbalances and warning of the impending tariff hike set for August 1, 2025.
The tariffs are aimed at addressing what the US describes as South Africa’s “unsustainable trade deficits” and longstanding market barriers.
The US decision to increase tariffs on South African goods has raised concerns among industry experts and exporters, who warn that key sectors such as automotive, agriculture, and mining could be severely impacted.
Last week, IOL reported that Minister of Finance Enoch Godongwana warned that South Africa stands to lose around 100,000 jobs due to US tariffs if a trade deal is not renewed.
"My prayer, first and foremost, is that the deal should be made by August 1st. And secondly, if it's not made, it would be useful that we get an extension until we finalise the deal,” he said.
"Of course, the US has a huge economy. If we lose a trading partner such as the USA, it's going to have a major impact and create more unemployment in the economy.".
Last month, the Automotive Business Council (Naamsa revealed that South Africa’s vehicle exports to the United States have dropped dramatically following the imposition of US tariffs, with declines of 73% in the first quarter of 2025, and further falls of 80% and 85% in April and May, respectively.
This was after Trump imposed a 25% tariff on all vehicles imported into the US earlier this year.
IOL News
mthobisi.nozulela@iol.co.za