Trump Tariffs: SA throws blueberries into the US trade deal basket as time runs out

Overnight, hopes of a trade deal between South Africa and the US were further dashed, as many commentators have already written off any chance of lowering the pending 30% export duty set to take effect on Friday.

Speaking on CNBC’s Squawk Box late yesterday South African time, US Commerce Secretary Howard Lutnick confirmed that US President Donald Trump’s August 1 deadline to impose major tariffs on several trading partners would not be delayed.

Lutnick said Trump “holds all the cards” and has no reason to back down. “So now the price of a deal with the United States of America is black and white, completely open markets,” he told CNBC. “He wants to make sure that Americans can sell their goods overseas”.

“So, are there deals on the table for him to consider? Yes,” Lutnick told the news station, adding that Trump “knows that he can just set the rate and set the price and move on”.

This came as Trade, Industry and Competition Minister Parks Tau reiterated late yesterday that South Africa was still working to secure a deal. “Our view is that negotiations remain the best tool to deal with the issues that are on the table,” Tau said in a statement.

Most commentators, however, do not expect a deal to be signed before Friday.

Tau said the Department has been engaged in “intense negotiations” with the US. “We have signed a condition precedent document and have readied our inputs for entry into the template which is to follow from the US,” he said. Among South Africa’s concessions is “open market access” for blueberries.

Yet, Tau conceded that a “reset” in South Africa’s already strained relationship with the US is inevitable. “The intersection of geopolitical, domestic and trade issues best defines the current impasse between the US and South Africa, and a reset is unavoidable,” he said.

Earlier this month, dozens of countries received letters from the US President’s Office stating that Trump was imposing tariffs to protect America’s sovereignty and because of what he described as massive trade deficits. South Africa, however, has disputed his calculations.

Trump has also threatened an additional 10% tariff on any country aligning with BRICS nations’ policies. “Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” he wrote on his Truth Social platform.

South Africa has “no intention of decoupling from the United States,” Tau said, adding that the country had decided not to retaliate. Trump, however, has warned that any retaliation would trigger even higher tariffs.

In a July 7 statement announcing the latest deadline, the White House said, “Trump is the best trade negotiator in history.”

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