President Cyril Ramaphosa and US President Donald Trump have spoken telephonically on , Tuesday,  August 6, 2025, to further discuss bilateral trade matters.

According to the presidency spokesperson Vincent Magwenya, “the two leaders undertook to continue with further engagements recognising the various trade negotiations the US is currently involved in.”

He added, “Respective trade negotiating teams will take forward more detailed discussions,” emphasising ongoing efforts to resolve trade issues.

The 30% tariffs imposed by the United States on South African imports were initially expected to come into effect last week.

However, Trade and Industry Minister Parks Tau confirmed that no final trade agreement has yet been reached between the two countries. The tariff increase follows a formal letter from President Trump to President Ramaphosa, demanding that South Africa address long-standing trade imbalances and market access restrictions.

The tariff is due to be implemented at midnight. 

Minister in the Presidency Khumbudzo Ntshavheni provided an update on the framework deal following a briefing on the outcomes of Cabinet meetings on Thursday, August 7, 2025. 

She said, “In light of the 30% tariffs against South Africa that are expected to come into effect today, the 7th of August 2025, with the provision that the tariffs will be reviewed as soon as the two countries reach a deal.”

She further noted that Cabinet “affirmed government’s commitment to finding constructive and sustainable solutions through continued engagements with the United States of America, including at a presidential level.”

On government efforts to bolster negotiations, Ntshavheni said, “As communicated this morning through the presidency, President Ramaphosa has reached out through a phone call to President Trump yesterday morning as part of bolstering South Africa’s negotiation efforts on the trade agreement.”

The government remains focused on economic growth to save and create jobs, including “intensifying diversification efforts and strengthening our global supply chain integration as the country works to expand its export markets to Asia, Europe, the Middle East, and across the African continent to enhance our economic resilience,” Ntshavheni said.

Regarding industries affected by the tariffs, she explained that “government is focusing on demand-side interventions in the impacted industries and targeted interventions to ensure industry stability and safeguarding employment.”

These interventions include establishing an export support desk to assist affected companies, measures to help companies absorb the tariff and facilitate long-term resilience and growth strategies to protect jobs and productive capacity, said Ntshavheni. 

Ntshavheni also highlighted the introduction of a “localisation support fund for affected companies to contribute to the national effort, and the export and competitiveness support programme, which will include a working capital facility and plant and equipment facility to address short- to medium-term needs across all industries.”

She added that the government is “working with the Department of Employment and Labour on measures to mitigate potential job losses using existing instruments within the Department of Labour’s entities that can be adjusted to respond to current challenges.”

Following consultations with the Competition Commission, “a block exemption for exporters has been introduced to enable collaboration and coordination by competitors. A draft block exemption will be published by the end of this week so that the process can be concluded expeditiously, and the information will be found on the Department of Trade, Industry and Competition website,” she said.

Moreover, she also said the Department of Trade, Industry and Competition, in consultation with industry associations and export councils, has compiled a South Africa-China Trade and Investment Package 2025-2029 as a basis for economic engagement with China.

Ntshavheni detailed that “on trade, the priorities are on the exchange of top 100 products, establishment of a permanent expo in China, and cooperation to address regulatory measures.” 

The package, she said, also prioritises investment and industrial development in sectors including “steel, tyres, automotive, battery manufacturing, pharmaceuticals and medical devices, rail manufacturing, and the digital economy.”

On the skills development component, the focus is “on skills associated with identified priority sectors, including to service and provide after-care maintenance.”

She noted that the package was shared with the Government of the People’s Republic of China during Deputy President Paul Mashatile’s working visit from July 14 to 18, 2025.

Mashatile engaged with key Chinese state-owned enterprises and financial institutions and officially launched the South African National Pavilion at the China International Supply Chain Expo to position South Africa as a gateway to sub-Saharan Africa for trade, investment, and industrial cooperation, she said. 

hope.ntanzi@iol.co.za

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