The Ministers of the Department of International Relations and Cooperation (DIRCO) as well as of Trade and Industry (Dti), have decided on multiple efforts to respond to the 30% tariff hike imposed by the United States on Friday.
While the Departments continue negotiations with the US, to protect agreements amounting to 9% of South Africa’s global exports., They will implement an Economic Response Package, which includes the establishment of Export Support Desk, which will serve as a direct point of contact for companies affected by the US tariff hike.
Government is also considering measures to assist companies to absorb the tariff and facilitate long-term resilience and growth strategies, to protect jobs and productive capacity in South Africa.
In a statement, Chrispin Phiri, Spokesperson to the Minister of International Relations and Cooperation, said the Localisation Fund Support (LSF) is also ready to contribute to the national effort to support affected companies.
The LSF is expected to issue an open call from firms operating in affected value chains, with the aim of providing targeted competitiveness and efficiency support.
“To build resilience, we are working on an Export and Competitiveness Support Programme (ECSP), which will include a working capital facility and plant and equipment facility to address short to medium term needs across all industries” said Phiri.
He also said the Department of Labour is working on measures to mitigate potential job losses, using existing instruments such as the UIF (unemployment fund).
In addition, the Clean Trade and Investment Partnership with the European Union has unlocked a R90 Billion Investment Package that is committed. This initiative will unlock new market access opportunities for South Africa, including the export of Sustainable Aviation Fuel (SAF) by Sasol and the exports of hybrids and Electric Vehicles.
He also said “we’ve made significant progress in opening up vast new markets like China and Thailand, securing vital protocols for products like citrus and others. With China alone being a $200 billion market, we are confidently expanding our reach and creating new opportunities for our agricultural producers.”