South Africa reaffirmed its commitment to finalising a trade deal with the United States, despite ongoing geopolitical, domestic, and trade challenges.

In a statement released on Tuesday, Department of Trade, Industry and Competition (DTIC),  Minister Parks Tau stressed that a “reset is unavoidable” in the trade relationship between the two nations.

In the statement, the government stated its decision.

“South Africa took the decision not to retaliate to the reciprocal tariffs announced by the United States. We also want to reiterate that we have no intention of decoupling from the United States either.”

Additionally, the South African government said it views negotiations as the most effective tool to address the issues.

South Africa remains dedicated to the process, awaiting substantive feedback from its US counterparts regarding the final status of their Framework deal.

South Africa finds itself among approximately 185 nations with which the United States is attempting to finalise negotiations by August 1, 2025.

The proposed Framework deal includes several key areas.

• Energy Imports: Importing 750 to 100 petajoules of Liquified Natural Gas (LNG) over ten years, which could generate $12 billion.

• Agricultural Market Access: Streamlining US poultry exports under the 2016 tariff rate quota, potentially unlocking around $91 million in trade. South Africa is also prepared to allow blueberry exports, pending the necessary protocols.

• South African Investments in the US: South African companies plan to invest $3.3 billion in U.S. industries, including mining and metals recycling.

• Joint Investment Opportunities: Both governments will work together on investments in critical minerals, pharmaceuticals, and agricultural machinery.

• Tariff Exemptions: Certain sectors may be exempt from reciprocal tariffs to protect supply chains, including shipbuilding, counter-seasonal agriculture, and exports from Micro, Small, and Medium Enterprises (MSMEs) earning less than $1 million annually.

The department has been engaged in a period of negotiations with the United States.

It has also signed a condition precedent document and has prepared its inputs for integration into a template expected from the US.

“President Ramaphosa has expressed our willingness to reset the trade relationship with the US and develop a solution which is mutually beneficial,” read the statement.

US President Donald Trump’s tariffs have effectively nullified the AGOA preferential trade deal, under which certain goods from eligible African countries could enter the US levy-free.

“Despite the challenges that have been presented by this period, we have put our best foot forward, bringing together the subject specialists within our ranks that have dug deep to ensure that our country is adequately prepared for a number of potential scenarios.”

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