The US may impose tariffs, but it’s time for South Africa to shift focus to more reliable trade partners in the global market.
The trade tariffs about to be levied by US President Donald Trump on South Africa will hurt sectors of our economy, but they won’t cause the immense damage claimed by those who would have us go out of our way to avoid annoying Washington.
The reality is that exports to the United States comprise just 6% of our total exports. Trump’s tariffs will hit our agriculture industry the hardest.
On the other hand, there is the additional threat that Trump will cancel the African Growth and Opportunities Act (Agoa) by which certain SA imports into the US benefit from zero tariffs.
Even in that, worst-case, scenario, SA exports covered by that agreement still form only a small percentage of all we sell abroad.
What Trump’s actions – even if he rolls back on some of them, as he is already doing in some cases – have done is emphasise that the US is a fairweather friend at best and foe at worst.
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We should probably not put any more eggs in that fragile trade and diplomatic basket. And, there are other games in town when it comes to international relations and influence. We can play those games.
Trump’s attitude towards any developing “sh*thole” country, as he calls them, should bring us closer to our partners in Brics… especially China and India.
Both of those countries have growth rates which will be the envy of America once the Trump-initiated recession bites – and they have much bigger markets which are a perfect destination for our produce.
We must look to implement joint investment programmes with those countries to ensure that SA does not become a mere exporter of raw resources, but supplies finished goods.
Trump’s tariffs must just be the wake-up call our economy needs.
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