NextFin news, South African Minister of Trade, Industry and Competition Parks Tau said on Sunday, September 21, 2025, that he is cautiously optimistic South Africa will reach a trade agreement with the United States to address the 30% tariffs imposed on South African exports by former US President Donald Trump.
Speaking during an interview in New York, Tau confirmed he had held "cordial and constructive" talks with US Trade Representative Jamieson Greer and members of the US Congress in Washington the previous week. The discussions focused on resolving the tariff issues and advancing a trade deal.
Trump’s tariffs, which took effect on August 7, 2025, followed an executive order that imposed new reciprocal tariff rates on South African goods, significantly impacting key sectors such as automotive, agriculture, and manufacturing.
South Africa had submitted a revised trade proposal on August 12, 2025, offering easier market access for American agricultural products like blueberries, poultry, and pork. Tau said the US provided a document in response, and both sides have been engaged in intensive negotiations over the text of the proposed agreement.
"We are now working on the basis of the text they’ve provided," Tau said. "Our teams met over intense discussions last week to clarify specific issues, and the US agreed to provide a revised text early this week, after which we will give a formal response and enter detailed negotiations."
Tau emphasized that while South Africa’s land redistribution and affirmative action policies have been discussed, they are not the primary issues in the trade negotiations. "These hot-button issues are on the table but are part of ongoing discussions rather than the core trade talks," he said.
The South African Department of Trade, Industry and Competition (DTIC) will consult with various government departments, including Transport, National Treasury, Minerals and Petroleum Resources, Energy, and Agriculture, before presenting a formal response to the US. The matter will also be taken to Cabinet for consideration.
In parallel, Tau’s department is exploring new trade opportunities in Asia and the Middle East, including Japan, India, and Saudi Arabia, to diversify markets amid the tariff challenges. Talks with African countries such as Algeria and Egypt are also underway, focusing on collaboration in automotive, gas, oil, and mineral sectors.
Minister Tau’s engagements come as South Africa navigates a critical phase in its trade relations with the US, aiming to mitigate the economic impact of the tariffs and secure a mutually beneficial trade agreement.
Source: Daily Maverick, IOL, MSN (September 22, 2025)
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