Minister Parks Tau to embark on crucial visit to Japan and India amid US tariffs saga
Trade, Industry and Competition Minister Parks Tau is expected to undertake a working visit to Japan and India in the coming days, amid South Africa’s struggle with the impending 30% tariffs from the United States.
The visit aims to strengthen trade relations with these two key economic partners and explore new collaboration opportunities.
On Wednesday, department spokesperson Kaamil Alli could not confirm the working visit, stating that nothing had yet been finalised.
However, a senior government official confirmed plans for Tau to undertake the trip within the coming day, saying Tau and the Presidency have been in recent talks about the trip, which is now more crucial than ever due to the US tariffs saga.
The official noted that Japan’s recent deal with US President Donald Trump, which reduced tariffs on Japanese exports, including autos and auto parts, to 15%, is an important lesson for South Africa.
South Africa, India, and Japan have enjoyed mutually beneficial relations.
Japan is one of South Africa’s key economic partners, with significant investments in various sectors, including manufacturing, mining, energy, and automotive, while India is part of BRICS.
This will be the second Japanese visit for Tau, who accompanied Deputy President Paul Mashatile, Agriculture Minister John Steenhuisen, and International Relations Deputy Minister Thandi Moraka in March.
The visit came after the Japanese government extended an invitation to the South African government to cement diplomatic relations between the two countries and explore new collaboration.
A senior government official stated that the timing and delegation for Tau’s upcoming trip to both countries remain unclear. However, the official emphasised the trip’s heightened importance due to the ongoing US tariffs issue.
He said after Japan had struck a deal with Trump, it was important that SA take a leaf from them.
“All I know is that the minister (Tau) and the Presidency have been in recent talks about the trip to India and Japan and how to weather this tariffs mess we are under…but it’s not only that we have good relations with the country who both have a market here, especially in the motor industry,” the source said.
In a recent trade agreement with the US, Japan successfully circumvented 25% tariffs by pledging investments.
This deal lowers tariffs on Japanese exports, such as automobiles and automotive components, to 15% in return for Japan’s commitment to investments and imports.
The US tariffs, expected to kick in on August 8, could put approximately 30,000 jobs at risk in South Africa, according to Tau.
He previously said the department had been working frantically to secure a trade deal with the US to avert the tariffs, but so far, no agreement has been reached.
The Congress for South African Trade Unions (Cosatu) welcomed the news of the visit, saying the two countries were important to South Africa.
“India and Japan are major global economies and trading partners for South Africa… It’s critical that these visits, plus others, are linked to increasing investment in South Africa to unlock growth and jobs and to opening export opportunities for South African companies, in particular agriculture, mining, motor, and other manufacturing sectors.
“Toyota is a major investor here, and we hope to see it and other Japanese companies expand their presence. Similarly for Tata and other Indian companies… Sourcing new export opportunities is key as we navigate the new tariffs announced by the US on South African exporters,” said Cosatu spokesperson Matthew Parks.
Political analyst Dr John Molepo said the visit came at a crucial time for South Africa’s economy.
“With the US tariffs looming, it is essential for South Africa to strengthen its trade relations with other key partners.
He said the visit should yield tangible outcomes that will bolster trade, investment, and diplomatic relations between South Africa and these two countries.
mashudu.sadike@inl.co.za