US Tariff Relief is Temporary

Statement by Toby Chance MP – DA Spokesperson on Trade, Industry & Competition:

The DA notes the temporary relief offered to South African businesses by the United States Supreme Court’s decision on President Trump’s tariff policy. Minister Tau now have a window of opportunity to rebuild trade relations with the United States, which they must take.

The repeal of the tariffs instituted under the US International Emergency Economic Powers Act is a welcome relief for our exporters, especially those in the agricultural sector, who now face a more level playing field with competing exporters in the Southern Hemisphere.

However, the relief is both temporary and specific. Our automotive sector will continue to face high tariffs under US Section 232, and we must prepare for higher tariffs to be reimposed this year. President Trump has already decided to impose a global 15% baseline tariff, and could seek to impose further country-based tariffs through Section 301. In addition, AGOA’s renewal will expire in September of this year.

Minister Tau cannot treat the tariff repeal as mission accomplished. He has a window of opportunity to repair our trade relations with the United States, and must secure a deal that secures the livelihoods of factory workers from Kariega to Tshwane, and farmhands from Citrusdal to Tzaneen.

The ANC will have to give up its ideological preferences for aligning South African policy with rogue regimes rather than in our national interest, and inflexibility on non-tariff barriers. The jobs of thousands of South Africans depend on it.

In tandem with rebuilding US relations, Minister Tau must improve our trade relations on the African continent and with other partners. South Africa is uniquely placed to further expand our exports to our neighbours and further afield and must tap this market. Minister of Agriculture John Steenhuisen has provided the blueprint, opening new markets for South African agricultural exports across the world, allowing South African exporters to have their best year on record in 2025.

We cannot have a passive trade policy in the new global trade environment. Minister Tau must act quickly and effectively to protect South African jobs and businesses.