30% tariffs aside, SA needs to get to root of US contention - Analyst

JOHANNESBURG - The US, like any other country, is a sovereign state.

It can, therefore, make decisions any way it wants, says President Cyril Ramaphosa.

'Like ourselves, we are a sovereign country that can decide who we do our dealings with,' he adds.

US President Donald Trump has imposed a 30% tariff on goods imported from South Africa. No country was spared, including uninhabited islands such as the Heard and McDonald Islands.

Ramaphosa says that the government are still studying what these tariffs mean for South Africa and will make informed decisions.

"These are the matters that we continue to deal with carefully and responsibly," he says.

Ramaphosa says that the government will not act out of spite nor out of emotions when determining the country's trading future with the US.

International Relations Minister Ronald Lamola says the country will continue domestic supply resilience, reducing the cost of doing business and increasing competitiveness of South Africa's economy.

South Africa should not focus on the 30 percent tariff hike, but instead look to resolve their relationship with the USA.

Pretoria is concerned about the new tariffs, with the presidency saying it needs to negotiate a new bilateral trade agreement with the US.

The International Relations and Trade, Industry and Competition ministers will outline the country’s response.

Analyst Dr Terence McNamee says South Africa should not fixate on the 30 percent tariff hike but instead look to resolve their relationship with the US.

'South Africa has to introspect on the reasons why the US is implementing and putting this kind of pressure on South Africa,' says McNamee.

McNamee says the things could be the ICJ case or the Expropriation Act.

"It has to think about the things that it will concede on without compromising your principals," says McNamee.

While the President is aware that every decision will have serious implications and its impact, Ramaphosa says they will do what is necessary for South Africans.

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