‘Support desk’ launched as SA braces for 30% US tariffs
The Department of Trade, Industry and Competition has launched a support desk for export companies affected by the looming US tariff hike.
The White House said the tariffs, some of which have been revised, will go into effect in a week and not on Friday as expected.
The Department of Trade and Industry has described the duties as a direct threat to our exports especially in the key automobile food processing steel and chemical sectors.
Companies will have to fork out 30% in taxes at the American border, unless there's a breakthrough in negotiations.
The ministry says the support desk's part of an urgent intervention to protect jobs and keep market access open in the US.
Minister Parks Tau says among other things, it will provide advice and updates to exporters on alternative destinations, and guidance on market entry processes.
He admits it's a trying time for the country.
"The ability to say exporters currently who are trading in these set of products that could be affected. How can you find alternative markets, which are the countries that we have agreements with, but also what support programmes should be able to give.”
The US says the door remains open to further negotiations.
A White House official says border and customs agencies are being given a week to prepare for the new plan.
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Under the executive order President Donald Trump has signed, tariff rates have been adjusted for over 60 countries - with duties ranging as high as 41% for Syria and 40% for Myanmar.
White House Press Secretary Karoline Leavitt says the revised rates include a drop in tariffs on goods from Israel, India, and Lesotho.
“ President Trump is restoring America's economic sovereignty by reducing our reliance on foreign countries,” she adds.
At the same time, a local economist says Minister Tau is likely to propose extending trade talks to soften the blow.
Thabile Nkunjani says, however, several key industries could still take a heavy knock.
" Provinces such as the Western Cape, parts of Northern Cape for the processed food, including the the cape in specifically for the sugar industry.
“And then some other products that tend to be exported there, including the likes of ice cream and some grapes. So there's a couple of products that tend to be sent there, and of course their concentration is different, but those are some of the sub-sectors that are going to have to deal with the pressures as a result of the tariff.”
