S. Africa to offer support to companies hit by levies

The South African government will provide financial assistance to companies affected by the tariffs imposed by the United States and explore other global markets, said a government official on Monday.

Ronald Lamola, minister of international relations and cooperation, briefed the media in Johannesburg about the South African government's response to the US tariffs. The US imposed 30 percent tariffs on South African goods, effective from Thursday.

Lamola said the government has established an export support desk, which will provide affected companies with information about global trends on trade and where they can explore opportunities.

"This support measure aims to support the diversification of export markets for increased resilience and facilitate the entry into alternative markets for affected exporters. The desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements, and linkages to South African embassies and high commissions abroad," he said.

He also said that the government will provide working capital facilities and plant and equipment facilities to address short- to medium-term needs across all industries, thereby supporting the competitiveness of enterprises.

South Africa's minimal 0.25 percent share of total US imports makes the 30 percent tariff unfair, Lamola said. He pointed out that South Africa poses no trade threat to the US economy or its national security.

South Africa will continue to use diplomatic channels to engage the US to get a mutually beneficial trade deal, he said, adding South Africa is exploring ways to increase trade with countries in Asia, Europe, the Middle East and the Americas.

Heavy blow

The tariffs are expected to deal a heavy blow to South Africa's economy. South Africa's Department of Trade, Industry and Competition has said that about 30 percent of the jobs are likely to be lost as a result of the US trade tariffs. Some economists said the trade tariffs will shave off 0.2 percent of South Africa's economic growth.

"While facing global trade challenges, South Africa is proactively building a more resilient agricultural sector," Lamola said.

"We've made significant progress in opening up vast new markets like China and Thailand, securing vital protocols for products like citrus and others. With China alone being a $200 billion market, we are confidently expanding our reach and creating new opportunities for our agricultural producers."

Parks Tau, minister of trade, industry and competition, said South Africa is also engaging China to implement the proposed zero-tariffs policy. China has recently promised to grant zero-tariff treatment to 53 African countries.

Lamola urged South Africans in politics, civil society and business to speak with one voice on tariffs. He said the government has been handling the tariff issue with restraint, even when provoked, because they know its impact on the economy and jobs. A total of 600 US companies operate in South Africa.

The US accounts for 7.5 percent of South Africa's exports, with the European Union being the first and China the second-largest trading partners. South Africa has said it will not reciprocate the tariffs imposed by the US.

The writer is a freelance journalist for China Daily.