SA government launches export support measures in response to ‘inscrutable’ US tariffs
Government this week confirmed a multi-pronged Economic Response Package to help exporters adapt to US tariffs on their goods.
The Response Package comes amid ongoing bilateral trade negotiations aimed at finalising a trade deal that may yet supersede the proposed 30% tariff due to take effect on August 8.
According to a Government press release issued on Monday, the Response Package includes the following:
-- “The establishment of an Export Support Desk, which will serve as a direct point of contact for companies affected by the US tariff hike. The aim of this support measure is to support the diversification of export markets for increased resilience and facilitate the entry into alternative markets for affected exporters. The Desk will provide updates on developments and tailored advisory services to exporters on alternative destinations, guidance on market entry processes, insights into compliance requirements and linkages to South African Embassies and High Commissions abroad. The contact details of the Export Support Desk have been published on the dtic website.
-- 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. The details of these are being finalised and will be communicated shortly.
-- Localisation Fund Support (LSF) stands ready to contribute to the national effort to support South African companies impacted by the tariffs. In collaboration with the dtic, IDC and other agencies, LSF will issue an open call from firms operating in affected value chains, with the aim of providing targeted competitiveness and efficiency support.”
Government is also working towards establishing 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”, the statement said. “We are also working with the Department of Labour on measures to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges.”
The SA government has also outlined its efforts to “stabilise and enhance” trade and investment relations with the US. The underlying reasons for the unilateral 30% tariff on a broad sweep of SA goods remained ‘inscrutable’, the statement said.
“South Africa isn't just a trading partner—we're a major investor in the US, with our companies sustaining American jobs. Similarly, over 600 US companies in South Africa contribute to our industrial growth and create employment. Our goal is to preserve and grow these mutually beneficial relationships.”
Jacques Moolman
President of the Cape Chamber of Commerce and Industry
Read the full Government statement here (Joint Media Statement on South Africa's response measures to US tariffs | South African Government)