South Africa's exports at risk: US proposes 12.5 percent tariffs over 'forced labour' concerns

South Africa could soon find itself facing higher costs for its exports to the United States

South Africa could soon find itself facing higher costs for its exports to the United States after being named in a major trade action by the United States Trade Representative over concerns about the import of goods linked to forced labour.

IOL had previously reported that as tensions continue to simmer between South Africa and the United States, the US has expanded its investigation into the country's trade policies, scrutinising whether they are harming American interests.

Launched by the Office of the United States Trade Representative (USTR), the inquiry encompasses 60 economies, and could lead to significant repercussions for South Africa, including potential tariffs and trade restriction.

According to the Section 301 findings under the Trade Representative, the failure by South Africa and other economies to effectively prevent the import of goods made with forced labour is considered “unreasonable” and harmful to US trade.