South Africa cabinet has reaffirmed government’s commitment to finding constructive and sustainable solutions through ongoing engagements with the United States, including at a Presidential level.
This follows the recent decision by US President Donald Trump to impose a 30% tariff on South African imports, effective 7 August 2025.
The tariffs are expected to affect a number of key sectors, especially the automotive and agriculture.
Briefing the media on Thursday in Pretoria, following Wednesday’s Cabinet meeting in Cape Town, Minister in The Presidency, Khumbudzo Ntshavheni, confirmed that Cabinet received an update on the Framework Deal with the US. The agreement includes a provision that the tariffs will be reviewed as soon as the two countries reach a deal.
“Government’s efforts remain focused on growing the economy to save and create new jobs, which include intensifying diversification efforts and strengthen their global supply chain integration as the country works to expand its export markets to Asia, Europe, the Middle East, and across Africa to enhance our economic resilience,” Ntshavheni said.
The Minister said government is focusing on demand side interventions in the impacted industries and targeted interventions to ensure industry stability and safeguard employment.
Among the targeted interventions include:
• The establishment of an Export Support Desk, which will serve as a direct point of contact for affected companies,
• Measures to assist companies to absorb the tariff and facilitate long-term resilience and growth strategies to protect jobs and productive capacity in South Africa,
• A Localisation Support Fund (LSF) for affected companies to contribute to the national effort
• The Export and Competitiveness Support Programme (ECSP), which will include a working capital facility and plant and equipment facility to address short to medium term needs across all industries; and
• Working with the Department of Employment Labour on measures to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges.
“Following consultations with the Competition Commission, a Block Exemption for Exporters has been introduced to enable collaboration and coordination by competitors. A draft Block Exemption will be published by the end of the week so that the process can be concluded expeditiously,” Ntshavheni said.
On Wednesday, 6 August 2025, President Cyril Ramaphosa held a telephone discussion with President Trump on bilateral trade matters, where the two leaders undertook to continue with further engagements recognising the various trade negotiations the US is currently involved in.
The Minister said the President’s call to President Trump was part of supporting the negotiations, noting that there cannot be agreement on a phone call.
“The technical team must do the actual work, and there is always room for negotiations. We have indicated that there are no foreign negotiations,” the Minister said.
South Africa-China trade and investment package
Meanwhile, the Department of Trade, Industry and Competition (the dtic), in consultation with industry associations and export councils have compiled a South Africa-China Trade and Investment Package (2025 – 2029) as a basis for economic engagement with China.
The package includes trade, investment, industrial development and skills development.
On trade, the priorities are on the exchange of the top 100 products, establishment of a permanent expo in China, and cooperation to address regulatory measures, whilst the priorities on investment and industrial development are on investments in steel, tyres, automotive, battery manufacturing, pharmaceuticals and medical devices, rail manufacturing and the digital economy.
The skills development component focuses on skills associated with the identified priority sectors including to service and provide aftercare maintenance.
Ntshavheni said the package was shared with the government of the People’s Republic of China (PRC) during the working visit of Deputy President Mashatile to China, that took place from 14 to 18 July 2025.
“The Deputy President engaged with key Chinese state-owned enterprises and financial institutions and also participated in the South Africa-China Investment Forum and the China International Supply Chain Expo (CISCE), where he officially launched the South African National Pavilion. The Pavilion aims to position our country as a gateway to Sub-Saharan Africa for trade, investment and industrial cooperation,” the Minister said. – SAnews.gov.za
