Pretoria: 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.
According to South African Government News Agency, the tariffs are expected to affect a number of key sectors, especially the automotive and agriculture industries. Briefing the media 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.
Ntshavheni stated that the government’s efforts remain focused on growing the economy to save and create new jobs. This includes intensifying diversification efforts and strengthening global supply chain integration as the country works to expand its export markets to Asia, Europe, the Middle East, and across Africa to enhance economic resilience. She added that the 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 are the establishment of an Export Support Desk to serve as a direct point of contact for affected companies, and measures to assist companies to absorb the tariff while facilitating long-term resilience and growth strategies to protect jobs and productive capacity in South Africa. Additionally, a Localisation Support Fund (LSF) for affected companies has been introduced, along with the Export and Competitiveness Support Programme (ECSP), which will address short to medium-term needs across industries. Collaboration with the Department of Employment Labour on measures to mitigate potential job losses is also underway.
Ntshavheni announced that 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 to expedite the process.
On Wednesday, 6 August 2025, President Cyril Ramaphosa held a telephone discussion with President Trump on bilateral trade matters, where the two leaders agreed to continue further engagements, recognizing the various trade negotiations the US is currently involved in. Ntshavheni noted that the President’s call was part of supporting the negotiations, emphasizing that actual agreements cannot be reached over the phone, as technical teams must conduct the detailed work.
Meanwhile, the Department of Trade, Industry and Competition (the dtic), in consultation with industry associations and export councils, has 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 components. The priorities on trade focus on the exchange of the top 100 products, establishment of a permanent expo in China, and cooperation to address regulatory measures. Investment and industrial development priorities include sectors such as steel, tyres, automotive, battery manufacturing, pharmaceuticals, medical devices, rail manufacturing, and the digital economy. The skills development component focuses on sectors identified as priorities.
Ntshavheni shared that the package was presented to the government of the People’s Republic of China (PRC) during Deputy President Mashatile’s working visit to China from 14 to 18 July 2025. During the visit, the Deputy President engaged with key Chinese state-owned enterprises and financial institutions and 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 to position the country as a gateway to Sub-Saharan Africa for trade, investment, and industrial cooperation.