While the overwhelming opinion was that US President Donald Trump’s 30% trade tariffs imposed on SA imports into America spelled ‘concern’, there was some good news as the brent crude price dropped.
Trump on Wednesday announced a global 10% tariff on all imports – and higher rates for a numbers of what was termed ‘worst offenders’.
One of those countries on the ‘worst offenders’ list was South Africa.
‘Put America first’
According to Bloomberg, Trump said that the United States would implement the long-talked-about reciprocal tariff structure to balance trade and put America first.
He said that countries around the world were exploiting trade with the United States and “cheating” by running massive surpluses while imposing steep tariffs and ‘hidden’ tariffs through VAT and other measures.
While Trump initially discussed fully reciprocal tariffs before the announcement, he said the United States would be kind and implement “discounted” rates.
By way of an example, while Trump claimed China is imposing tariffs of 67% on the US, the US would charge a “discounted” rate of only 34%.
For South Africa, Trump claimed that the tariffs on the United States amounted to 60%. In turn, it will implement a “discounted” 30% tariff on the country.
“A lot of bad things are happening in South Africa,” Trump said.
“We send them billions of dollars but we had to cut their funding because bad things are happening.”
Trump said that if any country wished to be exempt from the tariffs, it would simply have to move its production to the United States.
The president also announced a global 25% tariff on all imported vehicles, which took effect from midnight in the United States.
The reciprocal tariffs will come into effect on Wednesday, 9 April, with the 10% tariff kicking in earlier on Saturday, 5 April.
RELATED | Zimbabwe ‘escapes’ crippling Donald Trump trade tariffs
In terms of southern African countries, although above the ‘average’, Zimbabwe didn’t fare too badly at 18%.
South Africa (30%), Lesotho (50%), Namibia (21%) and Botswana (37%) all had more severe tariffs implemented.
ALSO | Donald Trump hits ‘country nobody’s heard of’ Lesotho with 50% tariffs
Oil price tumbles
Oil prices tumbled on Thursday, with the main US crude contract WTI shedding 5.2 percent, as investors eyed weaker demand following President Donald Trump’s sweeping tariffs.
West Texas Intermediate slumped to $68.02 per barrel and European benchmark, Brent North Sea crude, retreated five percent to $70.72.
That potentially means good news for fuel prices in May.
The fuel price in South Africa is impacted by two main factors:
1. The international price of petroleum products, driven mainly by oil prices
2. The rand/dollar exchange rate used in the purchase of these products
While the former is down, the latter has worsened in the last 24 hours.
As reported by The South African website, earlier this week South Africa’s motorists saw a sizeable decrease in the price of both petrol and diesel.
Cyril Ramaphosa quick to react
In a statement on Thursday morning, the Presidency said it has noted with concern the newly imposed tariffs on South African exports to the United States of America.
‘Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity.
‘The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S, as an essential step to secure long-term trade certainty.’
Rand crashes
The rand plummeted following the announcement and is currently trading at R18.90/$ at the time of publishing.
Here are Donald Trump’s US Reciprocal Tariffs by country:
| Country/Region | Country/Region Tariff* | US Reciprocal Tariffs |
|---|---|---|
| Afghanistan | 49% | 10% |
| Albania | 10% | 10% |
| Algeria | 59% | 30% |
| Andorra | 10% | 10% |
| Angola | 63% | 32% |
| Anguilla | 10% | 10% |
| Antigua and Barbuda | 10% | 10% |
| Argentina | 10% | 10% |
| Armenia | 10% | 10% |
| Aruba | 10% | 10% |
| Australia | 10% | 10% |
| Azerbaijan | 10% | 10% |
| Bahamas | 10% | 10% |
| Bahrain | 10% | 10% |
| Bangladesh | 74% | 37% |
| Barbados | 10% | 10% |
| Belize | 10% | 10% |
| Benin | 10% | 10% |
| Bermuda | 10% | 10% |
| Bhutan | 10% | 10% |
| Bolivia | 20% | 10% |
| Bosnia and Herzegovina | 70% | 35% |
| Botswana | 74% | 37% |
| Brazil | 10% | 10% |
| British Indian Ocean Territory | 10% | 10% |
| British Virgin Islands | 10% | 10% |
| Brunei | 47% | 24% |
| Burma | 88% | 44% |
| Burundi | 10% | 10% |
| Cabo Verde | 10% | 10% |
| Cambodia | 97% | 49% |
| Cameroon | 22% | 11% |
| Cayman Islands | 10% | 10% |
| Central African Republic | 10% | 10% |
| Chad | 26% | 13% |
| Chile | 10% | 10% |
| China | 67% | 34% |
| Christmas Island | 10% | 10% |
| Cocos (Keeling) Islands | 10% | 10% |
| Colombia | 10% | 10% |
| Comoros | 10% | 10% |
| Congo (Brazzaville) | 10% | 10% |
| Congo (Kinshasa) | 22% | 11% |
| Cook Islands | 10% | 10% |
| Costa Rica | 17% | 10% |
| Cote d’Ivoire | 41% | 21% |
| Curacao | 10% | 10% |
| Djibouti | 10% | 10% |
| Dominica | 10% | 10% |
| Dominican Republic | 10% | 10% |
| Ecuador | 12% | 10% |
| Egypt | 10% | 10% |
| El Salvador | 10% | 10% |
| Equatorial Guinea | 25% | 13% |
| Eritrea | 10% | 10% |
| Eswatini | 10% | 10% |
| Ethiopia | 10% | 10% |
| EU | 39% | 20% |
| Falkland Islands (Islas Malvinas) | 82% | 41% |
| Fiji | 63% | 32% |
| French Guiana | 10% | 10% |
| French Polynesia | 10% | 10% |
| Gabon | 10% | 10% |
| Gambia | 10% | 10% |
| Georgia | 10% | 10% |
| Ghana | 17% | 10% |
| Gibraltar | 10% | 10% |
| Grenada | 10% | 10% |
| Guadeloupe | 10% | 10% |
| Guatemala | 10% | 10% |
| Guinea | 10% | 10% |
| Guinea-Bissau | 10% | 10% |
| Guyana | 76% | 38% |
| Haiti | 10% | 10% |
| Heard and McDonald Islands | 10% | 10% |
| Honduras | 10% | 10% |
| Iceland | 10% | 10% |
| India | 52% | 26% |
| Indonesia | 64% | 32% |
| Iran | 10% | 10% |
| Iraq | 78% | 39% |
| Israel | 33% | 17% |
| Jamaica | 10% | 10% |
| Japan | 46% | 24% |
| Jordan | 40% | 20% |
| Kazakhstan | 54% | 27% |
| Kenya | 10% | 10% |
| Kiribati | 10% | 10% |
| Kosovo | 10% | 10% |
| Kuwait | 10% | 10% |
| Kyrgyzstan | 10% | 10% |
| Laos | 95% | 48% |
| Lebanon | 10% | 10% |
| Lesotho | 99% | 50% |
| Liberia | 10% | 10% |
| Libya | 61% | 31% |
| Liechtenstein | 73% | 37% |
| Madagascar | 93% | 47% |
| Malawi | 34% | 17% |
| Malaysia | 47% | 24% |
| Maldives | 10% | 10% |
| Mali | 10% | 10% |
| Marshall Islands | 10% | 10% |
| Martinique | 10% | 10% |
| Mauritania | 10% | 10% |
| Mauritius | 80% | 40% |
| Mayotte | 10% | 10% |
| Micronesia | 10% | 10% |
| Moldova | 61% | 31% |
| Monaco | 10% | 10% |
| Mongolia | 10% | 10% |
| Montenegro | 10% | 10% |
| Montserrat | 10% | 10% |
| Morocco | 10% | 10% |
| Mozambique | 31% | 16% |
| Namibia | 42% | 21% |
| Nauru | 59% | 30% |
| Nepal | 10% | 10% |
| New Zealand | 20% | 10% |
| Nicaragua | 36% | 18% |
| Niger | 10% | 10% |
| Nigeria | 27% | 14% |
| Norfolk Island | 58% | 29% |
| North Macedonia | 65% | 33% |
| Norway | 30% | 15% |
| Oman | 10% | 10% |
| Pakistan | 58% | 29% |
| Panama | 10% | 10% |
| Papua New Guinea | 15% | 10% |
| Paraguay | 10% | 10% |
| Peru | 10% | 10% |
| Philippines | 34% | 17% |
| Qatar | 10% | 10% |
| Reunion | 73% | 37% |
| Rwanda | 10% | 10% |
| Saint Elena | 15% | 10% |
| Saint Kitts and Nevis | 10% | 10% |
| Saint Lucia | 10% | 10% |
| Saint Pierre and Miquelon | 99% | 50% |
| Saint Vincent and the Grenadines | 10% | 10% |
| Samoa | 10% | 10% |
| San Marino | 10% | 10% |
| São Tomé and Príncipe | 10% | 10% |
| Saudi Arabia | 10% | 10% |
| Senegal | 10% | 10% |
| Serbia | 74% | 37% |
| Sierra Leone | 10% | 10% |
| Singapore | 10% | 10% |
| Sint Maarten | 10% | 10% |
| Solomon Islands | 10% | 10% |
| South Africa | 60% | 30% |
| South Korea | 50% | 25% |
| South Sudan | 10% | 10% |
| Sri Lanka | 88% | 44% |
| Sudan | 10% | 10% |
| Suriname | 10% | 10% |
| Svalbard and Jan Mayen | 10% | 10% |
| Switzerland | 61% | 31% |
| Syria | 81% | 41% |
| Taiwan | 64% | 32% |
| Tajikistan | 10% | 10% |
| Tanzania | 10% | 10% |
| Thailand | 72% | 36% |
| Timor-Leste | 10% | 10% |
| Togo | 10% | 10% |
| Tokelau | 10% | 10% |
| Tonga | 10% | 10% |
| Trinidad and Tobago | 12% | 10% |
| Tunisia | 55% | 28% |
| Turkey | 10% | 10% |
| Turkmenistan | 10% | 10% |
| Turks and Caicos Islands | 10% | 10% |
| Tuvalu | 10% | 10% |
| Uganda | 20% | 10% |
| Ukraine | 10% | 10% |
| United Arab Emirates | 10% | 10% |
| United Kingdom | 10% | 10% |
| Uruguay | 10% | 10% |
| Uzbekistan | 10% | 10% |
| Vanuatu | 44% | 22% |
| Venezuela | 29% | 15% |
| Vietnam | 90% | 46% |
| Yemen | 10% | 10% |
| Zambia | 33% | 17% |
| Zimbabwe | 35% | 18% |
How concerned are you about these SA tariffs?
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