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South Africa offers ‘generous’ new trade deal to US to avert 30% tariff hit

Pretoria scrambles to shield economy from steep US tariffs

Peculiar Adirika by Peculiar Adirika
August 12, 2025
in News
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South Africa

South Africa trade deal aims to avert US tariffs and protect jobs, as ministers unveil new offer to boost bilateral relations

South Africa trade deal talks have taken a critical turn as Pretoria scrambles to prevent devastating economic fallout from a new 30 percent tariff imposed by the United States.

Also read: Nigeria hit with 15% US tariff under Trump’s new reciprocal trade policy

At a press briefing on Tuesday, Agriculture Minister John Steenhuisen described the new proposal as a “very broad, generous and ambitious offer” designed to safeguard South African exports and thousands of jobs.

Though details remain under wraps, the deal includes finalized measures to increase imports of US poultry, blueberries, and pork.

Trade Minister Parks Tau stressed that the new South Africa trade deal seeks to demonstrate that local exports pose no threat to American industries.

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He pointed out that South African goods account for only 0.25 percent of total US imports, adding, “Our trade relationship is complementary, not competitive.”

The harsh tariffs, which came into effect last Friday, have been projected to cost the South African economy approximately 30,000 jobs. This development has jolted policymakers into urgent action.

According to Steenhuisen, the negotiations unexpectedly veered into sensitive political terrain, with US diplomats raising issues about South Africa’s internal policies, including land expropriation and racial equity laws.

“These were surprising additions,” he noted. “We believed we were in a trade negotiation, not a policy debate.”

He further suggested that Washington may now be using trade mechanisms to express disapproval over South Africa’s domestic governance—a possible sign of a shifting global trade paradigm.

Despite the tension, officials remain hopeful. “We’re entering a new era,” Steenhuisen said, “but we’re doing so with a generous spirit and clear intent to preserve our economic ties with the United States.”

The US remains South Africa’s third-largest trading partner, trailing only the EU and China.

Also read: Nigeria power tariff crisis threatens NNPC plants, FG moves to intervene

As the world watches how this high-stakes South Africa trade deal unfolds, one thing is clear—Pretoria is not backing down from the negotiation table.

Source: Read more at channelstv.com

Peculiar Adirika
Peculiar Adirika

Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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