CAPE TOWN: South Africa has found itself in the middle of a potential trade war between the United States and China. As the old adage goes ― when two elephants fight, it is the grass that gets trampled. In this case, it will be smaller countries who could bear the brunt.
Earlier this month, President Donald Trump signed a proclamation implementing new trade policies including 25% tariffs on Chinese exports, intended to recover at least $50-billion in annual economic harm.
The proclamation imposes a 25% duty on steel and 10% on aluminium imports from 12 countries ― namely Italy, Korea, Spain, Turkey, Egypt, India, Malaysia, Russia, South Korea, Thailand, Vietnam as well as South Africa ― which are viewed as threats to US national security, according to a report by US Secretary of Commerce.
South Africa did not make the cut in a list of countries that have been granted a temporary reprieve from the steel tariffs. Countries that did make the cut include Canada, Mexico, the European Union, Australia, Argentina, South Korea.
On Monday minister of trade and industry Rob Davies held a media briefing to provide details on the issue. “We believe we have made a strong case and it is now up to the president of the US to decide,” Davies says, referring to the submission South Africa made to have the steel tariffs lifted.
