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Ramaphosa, Trump hold trade talks as US tariff crisis continues

PRESIDENT Cyril Ramaphosa and US President Donald Trump held direct discussions on Tuesday morning aimed at resolving the escalating trade dispute that has seen America impose punitive 30% tariffs on South African exports.

The telephone conversation on August 6, 2025, focused on bilateral trade matters as both countries seek to defuse tensions that have threatened to derail decades of economic cooperation between the two nations.

All South African goods entering the US are now subject to a 30% tariff, with a specific 25% tariff imposed on vehicles and car parts, though key mineral exports including platinum group metals, coal, gold, manganese and chrome have been exempted from the punitive measures.

The tariffs, which came into effect on August 1, were imposed by Trump based on what his administration claims are excessive trade deficits with South Africa. President Ramaphosa has noted that South Africa is one of a number of countries to have received this communication on 7 July 2025, with the 30% tariff based on a particular interpretation of the balance of trade between South Africa and the United States.

Following Tuesday’s discussion, both leaders committed to continued engagement despite the ongoing trade negotiations the US is conducting with multiple countries. The presidents agreed that their respective trade negotiating teams would advance more detailed discussions in the coming period.

The US tariff order undermines the historical US–SA trade cooperation and poses a serious threat to strategic sectors such as citrus, macadamia, automotive components, steel and aluminium, according to South African parliamentary officials.

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South Africa is still waiting to hear back from the U.S. on a trade proposal it submitted last month in the hope of avoiding high tariffs, with the country having made a formal submission before the August 1 deadline.

The trade dispute represents one of the most serious challenges to US-South Africa economic relations in recent years, with South African officials disputing the methodology used by Washington to calculate trade imbalances that justified the tariff imposition.

Both governments indicated that further high-level engagements would follow as negotiating teams work to find a mutually acceptable resolution to the trade standoff.

By The African Mirror

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