South Africa has reaffirmed its commitment to engaging the United States over newly imposed trade tariffs but has made it clear that its Black Economic Empowerment (BEE) policy is not open for negotiation.
The latest tariffs come after Washington concluded a Section 301 investigation into the enforcement of restrictions on imports linked to forced labour. South Africa was among 41 economies identified by the Office of the US Trade Representative (USTR) as lacking sufficient legal measures or enforcement mechanisms to prevent the import of goods produced through forced or child labour.
As a result, many South African exports to the US now face a 12.5% tariff, although several products, including selected agricultural goods, remain exempt.
Trade, Industry and Competition Minister Parks Tau said Pretoria would continue discussions with the USTR in an effort to secure lower tariffs or have them removed altogether.
To strengthen its position, government intends to publish draft regulations banning the importation of goods produced wholly or partly through forced labour or child labour. Officials believe aligning South Africa’s legal framework with international labour standards could improve its prospects during future trade negotiations.
The new tariffs add to a period of increasing diplomatic and economic friction between Pretoria and Washington, creating fresh uncertainty for South African exporters that rely on access to the American market.
Executive order remains central to relations
South Africa’s newly appointed ambassador to the United States, Roelf Meyer, believes restoring stable trade relations will require addressing the executive order signed by US President Donald Trump in February 2025.
The order suspended American assistance to South Africa and offered refugee status to Afrikaners, following allegations by the Trump administration that South Africa was discriminating against White farmers through its land reform policies.
Trump has also criticised South Africa’s genocide case against Israel at the International Court of Justice and questioned Pretoria’s diplomatic relationships with Iran and Hamas.
Meyer said removing the executive order would be his immediate diplomatic priority because it continues to provide a basis for tariffs, trade restrictions and other punitive measures.
According to the ambassador, President Cyril Ramaphosa and Cabinet have given him a clear mandate to rebuild relations through dialogue with the White House, Congress, the State Department and the USTR.
Future negotiations are expected to extend beyond tariffs and include market access for US pork and poultry, South Africa’s land expropriation legislation, broader foreign policy issues and investment conditions.
BEE remains non-negotiable
Despite expressing willingness to negotiate across a wide range of trade issues, Meyer stressed that South Africa would not abandon Black Economic Empowerment.
He described the policy as a fundamental pillar of the country’s efforts to address economic inequalities created during apartheid and said there was no prospect of government withdrawing from it.
Instead, discussions could focus on how empowerment requirements are implemented. Meyer highlighted South Africa’s equity equivalence framework, which allows certain multinational companies to fulfil empowerment obligations through approved investment programmes instead of transferring equity ownership.
He added that South Africa could not create special exemptions exclusively for American companies.
Although Meyer characterised recent meetings in Washington as positive, he cautioned that support for stronger economic cooperation within some US government agencies does not necessarily reflect the position ultimately taken by the White House.
He said South Africa would continue pursuing practical engagement while preparing for the possibility that US trade policy could shift again as bilateral negotiations continue.
Source: BusinessTech / South African Government Statements