Once President Donald Trump levied a 30 percent duty on some imports from South Africa, that is the maximum amount that the United States has set for any African country with no exceptions.
The action is limited to products which are part of the U.S. Generalized System of Preferences (GSP) program.
The U.S. Trade Representative’s Office explained the raised tariffs by alleging soudh Africa’s trade practices, in addition to doubting the country’s eligibility for the GSP program. Nevertheless, the exact infringements were not indicated in the sources available.
South African authorities have not spoken out about the tariffs. The analysts assume the step will cause a considerable reduction in South African products that are exported to the U.S. market under GSP terms, however, they are still unable to assess the wider economic impacts.
The GSP program grants duty-free entry to the countries qualifying as developing ones, thus the Republic of South Africa enjoyed the benefits mostly in the two sectors of agriculture and automotive components. Normally, the suspension of tariffs is done after annual reviews or if the non-compliance has been found.
This resolution might have an effect on the U.S.-South Africa trade negotiations as well as on the African Continental Free Trade Area talks that are still in progress. The experts are of the opinion that such measures may stimulate the African governments to seek trade partners other than the U.S., thus being a major change of U.S.-Africa economic relations.
