FNB Economist Koketso Mano warns that the latest trade tariffs proposed by the US could accelerate the fragmentation of global supply chains and push countries towards more regional trade.

The US is proposing new tariffs of up to 12.5 per cent on imports from 60 trading partners, including South Africa, following an investigation into goods allegedly linked to forced labour.

The imposition of the tariffs is subject to public hearings scheduled for the 7th of next month before a final decision is made.

FNB Senior Economist Koketso Mano says global growth could remain weaker over the next few years because of ongoing disruptions and rising protectionism.

“For emerging markets or your more vulnerable markets, it is mostly a growth trade, specifically an export story, especially if you have a concentrated offering of exports and your exports are now experiencing restrictions when it comes to entering the United States market, then that will also be something that weighs on your growth,” says Mano.

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