SA moves to reverse US tariffs as SACU finalises joint offer to Washington

Banele Ginindza

South Africa will rely on a collective South African Customs Union (SACU) tariff offer, together with its own direct negotiations, to reverse the 30% tariffs imposed by the United States in September, senior trade official Ambassador Xolelwa Mlumbi-Peter told Parliament on Tuesday.

Mlumbi-Peter, the deputy director-general for trade in the Department of Trade, Industry and Competition (the dtic), said South Africa has been in continued engagement with the US on an agreement that would establish reciprocal tariffs, with the primary objective of reducing the recently imposed duties.

"There are also discussions on a tariff offer. This will be a SACU offer given that South Africa is part of a customs union. So, SACU is finalizing that with a view to submit it as soon as possible," Mlumbi-Peter said.

"The aim for South Africa is to ensure that we negotiate an agreement that creates a level of predictability on trade and reduces the reciprocal tariff, and enables us to be able to trade with the US. Of course, this will be done without compromising our national interests." 

Mlumbi-Peter expressed cautious optimism regarding the renewal of the African Growth and Opportunity Act (Agoa), which expired at the end of September. She said discussions in Washington indicate bipartisan support, and the White House has already signalled its backing for a one-year renewal.

She said the Ways and Means Committee is still to discuss any Bill at this stage, but there was "understood" to be bipartisan support for the renewal.

"What is expected will be a straight rollover of the current benefits to Agoa. The existing members, which will mean that once South Africa is rolled over, South Africa will continue to benefit under the program," she said.

"Senator John Kennedy has introduced a Bill which has signalled an interest to renew the program for a period of two years."

According to the Bill tabled by Senator Kennedy, the Agoa Extension and Bilateral Engagement Act or “AGOA 2.0” would extend the programme for two years, but only for countries that support US interests rather than adversaries like Beijing and Moscow.

Under the proposed legislation, Agoa 2.0 would:

• Extend AGOA for two years.
• Require a US strategy to negotiate bilateral trade agreements with select Agoa countries.
• Emphasise clear eligibility criteria for participating nations, including democratic governance, rule of law, human rights, combating corruption and open markets.
• Incorporate Kennedy’s US-South Africa Bilateral Relations Review Act to hold South Africa accountable for aligning with Beijing, Moscow and other adversaries.
• Ensure that Agoa is used to strengthen US partnerships in Africa while combating Chinese influence in the region.

The legislation also incorporates Kennedy’s US-South Africa Bilateral Relations Review Act to ensure that South Africa is not part of the new framework.

A similar bill was introduced in the US House of Representatives in April, signaling bipartisan pressure on South Africa’s geopolitical positioning.

Minister of Trade Parks Tau emphasised the importance of the African economic integration and said significant momentum has already been recorded under the African Continental Free Trade Area (AfCFTA). 

“SA exports under the AfCFTA have increased from R485 million in 2024 to R1.386 billion in the first seven months of 2025. Imports under AfCFTA also rose substantially. South Africa implemented the agreement in January 2024, and by 2025, 24 African countries had begun trading preferentially," Tau said.

"New market access is now unlocked in 13 non-SADC countries. Recent breakthroughs include agreement on critical rules of origin for autos and textiles, opening new opportunities for South African industry." 

BUSINESS REPORT