SA Government promises help auto exporters

South Africa is scrambling to protect its economy after USA’s President Donald Trump signed sweeping tariff measures targeting the country's key exports, potentially putting 100 000 jobs at risk, reported Reuters on 1 August.

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The executive order signed Thursday (31 July) imposes import duties on dozens of nations including South Africa, with implementation set for next week. This escalation is part of Trump's broader push to reshape global trade dynamics in America's favour.

President Cyril Ramaphosa maintained a measured response Friday, emphasising South Africa's commitment to diplomatic solutions. "All channels of communication remain open to engage with the USA, and our negotiators are ready pending invitation from the USA," he said.

The government is rushing to finalise emergency support for affected exporters, with the President promising details would be announced soon.

The timing couldn't be worse. The USA is South Africa's second-largest trading partner after China, importing everything from Mercedes-Benz vehicles and steel to wine and citrus fruits.

The automotive sector faces particular vulnerability. Industry representatives are calling it a "socio-economic crisis in the making," with the Reserve Bank warning of massive job losses in agriculture and manufacturing.

"If one considers that access to the USA was through AGOA, which was tariff-free, increasing tariffs to 30% effectively nullifies that market," explained SEIFSA CEO Tafadzwa Chibanguza, referencing the African Growth and Opportunity Act. The Steel and Engineering Industries Federation of Southern Africa notes that $1.8 billion in exports now hangs in the balance.

Opposition parties have criticised the government's response, with the Democratic Alliance dismissing the proposed support measures as inadequate for addressing the scale of the crisis.

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