SA could end up with lower US tariffs - economist
Economist Duma Gqubule believes there's no need for South
Africa to worry too much amid US President Donald Trump's tariff tirade.
But Gqubule says the country should closely monitor what happens to its steel, aluminium, and automotive exports, which remain under higher tariff categories.
"We have exports to the US worth over R150 billion and 40% are exempted from the tariffs, and 60% are subject to these tariffs, if the rules that he gave last time are still applied.
"So, 10% of the exports that we sent to the US are potentially affected, but you must remember that since everybody's suffering the same, we are not relatively worse than anybody else."
On Wednesday, Trump unexpectedly paused his reciprocal trade tariffs for most countries for 90 days.
But goods going into the United States will still be subjected to the baseline levy of 10%.
There was no respite for China.
READ: Trump’s tariffs trigger economic fears, rand slumps
Trump has pushed the Asian country’s tariff to an astronomical 125% after Beijing retaliated to 108% announced earlier this week.
Gqubule believes that while there is uncertainty, South Africa might eventually get a lower tariff rate.
"Trump wants us to enter into bilateral negotiations, they are going to prioritise the manufacturing intensive countries in Asia, and we are way down on the list of countries.
"So, it will take a while before South Africans know exactly what the situation is, but we will end up probably much less than 10%."
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