Ramaphosa disputes Trump claim: The 30% reciprocal tariff not an accurate representation of trade data

President Cyril Ramaphosa has noted the correspondence from United States President Donald Trump on the unilateral imposition of a 30% trade tariff against South Africa. 

Ramaphosa also noted that South Africa is one of a number of countries which have received similar communication announcing tariffs on Monday.

“This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States,” said Ramaphosa’s spokesperson, Vincent Magwenya.

“Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data. In our interpretation of the available trade data,  the average tariff imported goods entering South Africa stands at 7.6%.

“Importantly, 56% of goods enter South Africa at 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty,” he said.

However, the Presidency in Pretoria made it clear that South Africa continues with efforts to nurture closer trade relations with the United States.

“South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States. We welcome the commitment by the US government, that the 30% tariff is subject to modification at the back of the conclusion of our negotiations with the United States,” said Magwenya.

South Africa has continued to engage the United States, most recently at a meeting held on the sidelines of the US-Africa Summit on 23 June 2025 in Luanda, the capital of Angola.

“It was at this meeting where South Africa learned of a template with which the US wishes to engage sub-Saharan Africa on matters of trade. The South African negotiating team still awaits this template, however, President Ramaphosa has instructed the team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May 2025,” said Magwenya.

This Framework Deal addresses the issues initially raised by the United States, including South Africa’s supposed trade surplus, unfair trade practices and lack of reciprocity from the US.

Ramaphosa has urged the government's trade negotiations teams and South African companies to accelerate their diversification efforts in order to promote better resilience in both global supply chains and the South African economy.

On Monday night, IOL reported that South Africa will be hit with a 30% tariff on all its exports to the United States from August 1, following the formal letter from Trump to Ramaphosa, demanding action on trade imbalances and long-standing market restrictions.

In a letter dated 7 July and sent on official White House stationery, Trump said the move was “necessary to correct the many years of South Africa’s Tariff, and Non Tariff, Policies and Trade Barriers,” blaming Pretoria for what he called “unsustainable Trade Deficits against the United States.”

The sweeping tariffs will apply to “any and all South African products sent into the United States,” and are being imposed outside of any sectoral trade deals. The announcement follows a similar pattern of tariff notices sent to over a dozen countries in recent weeks, with South Africa facing one of the highest proposed rates.

jonisayi.maromo@iol.co.za

IOL News