By Lesedi Sibiya-Diplomatic Insider 

In recent months, South Africa has been giving its best to consolidate its relations with the United States. In particular South Africa has been negotiating the tariff hikes that were imposed by the Trump administration earlier this year.

 The tariff rates are expected to increase this week as was stated by President Donald Trump two months ago sitting at 30%. The South African government has developed a response package for the companies that will be affected by the tariff increase. 

Among some of the efforts made by the South African government to negotiate the tariff hikes is by offering to buy US liquefied natural gas as well as invest $3.3 billion in U.S industries through a framework deal that was presented to Trump and his administration. 

The capital of South Africa even made a last minute effort to improve their offer, however their efforts were unsuccessful. The rise in tariff costs is set to cause the loss of thousands of jobs according to South Africa officials as the agriculture and motor vehicle industries are set to be affected the most. 

Via the Unemployment Insurance Fund, the South African government plans to outline a “support programme” which will work to cushion the job losses that may affect thousands of South Africans. 

Minister of International Relations and Cooperation, Ronald Lamola has South Africa will continue to negotiate and engage with the United States and has opted not to mention the ongoing tension between South Africa and the United States due to policy disagreements and the case against Israel with International Court of Justice over the genocide happening in Gaza. 

“Thus, we will continue to engage the US to conclude a deal that advances the interests of both countries. South Africa seeks to conclude deals that promote addition and industrialisation, rather than extractive relations that deprive the country of the ability to beneficiate its mineral wealth by mimicking extractive colonial-era trade relations.” said Minister Lamola in a Ministerial press briefing.

“Moreover, South Africa poses no threat to the US economy nor its national security.” the Minister added. 

The Department of Trade has also expressed its plans to implement the “block exemption” for exporters which allow coordinated efforts by firms that would breach competition laws. A draft of the exemption is set to be given in at the end of the week. 

 Various Trade officials have outlined that companies will be introduced to new markets with support from embassies and new investors. A cabinet meeting is set to take place on Wednesday in which this framework will be expressed in more detail.