Countdown to critical moment for SA economy – less than a week to go
As D-day for the South African economy approaches, BEE and land expropriation are reportedly still key obstacles to progress.
D-day for the South African economy, Wednesday, 9 July 2025, is now less than a week away, and growing talk of a possible extension is fueling tension within government ranks.
In April, US President Donald Trump imposed 30% tariffs on all South African goods imported into the United States. However, after facing intense global backlash, he suspended the tariffs for 90 days—bringing the country to next week’s critical deadline.
D-DAY FOR THE SOUTH AFRICAN ECONOMY
Unfortunately, the Minister of Trade, Industry and Competition (DTIC), Parks Tau, has shared little in the way of progress on crucial US-SA trade talks. All he can confirm is that South Africa is (one of many countries) asking for more time, reports The Citizen.
Interestingly, US delegates appear to be stalling trade talks. Despite South Africa submitting several proposals to the US in May, it has yet to receive a response. The Department of Trade, Industry and Competition (DTIC) presented a framework agreement focused on trade and investment, highlighting key growth areas in both countries’ markets. However, the effort seems to have done little to prevent South Africa’s looming economic D-day.
POLITICAL ISSUES
The strained relationship between the US and South Africa appears to stem from deep-rooted ideological differences. Reports suggest that President Ramaphosa’s firm stance on Black Economic Empowerment (BEE) and his denial of land expropriation have unsettled US delegates.
Despite the tension, South Africa’s Deputy Minister of Trade met with a US representative last week on the sidelines of a summit in Luanda, Angola. During the meeting, South Africa voiced its concerns about the impact of reciprocal tariffs on the continent. In the worst-case scenario, the country is pushing for a maximum tariff of 10%.
WHAT WE WANT
To prevent D-day for the South African economy, the Department of Trade, Industry and Competition (DTIC) is pushing for key export products—such as cars, car parts, steel, and aluminium—to be exempted from the Section 232 tariffs. Although time is running out, the DTIC remains confident. It stated, “The proposed framework will go through the internal approval processes in the US administration. South Africa welcomes this and has expressed a preparedness to engage once it is finalised.”
Meanwhile, government is urging industry to exercise strategic patience and not take any decisions in haste. “Government will continue to use every avenue to engage with the US to find an amicable solution to safeguard our interests in the US market,” concludes the department.