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Tariff tit-for-tat with US 'a race to the bottom', says minister Parks Tau

Times LIVE

South Africa

Friday, April 4


South Africa will not respond to US tariffs with reciprocal tariffs on US goods as this would prove to be a “counterproductive race to the bottom” in a world where trade protectionism is increasingly prevalent,  according to trade, industry and competition minister Parks Tau.

The minister briefed reporters on Friday in Pretoria with minister of international relations and co-operation Ronald Lamola.

The briefing comes after US President Donald Trump announced 30% tariffs on imports from South Africa as a reciprocal tariff to what the White House claims is a 60% tariff imposed on US goods imported into the South African market.

Since returning to the White House, Trump has announced new tariffs including a sweeping 25% tariff on foreign vehicles and parts.

Former Canadian prime minister Justin Trudeau announced tariffs on US goods after Trump announced tariffs on Canadian imports.

Asked if South Africa would respond to the US tariffs in kind, Parks said imposing reciprocal tariffs without understanding how the US arrived at their tariffs would be counterproductive, trigger “a race to the bottom” and risky trade practices that will harm relevant markets.

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