Us President Donald Trump.
South Africa is facing a proposed 12.5% tariff on exports to the United States under a new Trump administration trade strategy – but the latest proposal represents an improvement on the blanket tariff regime it is intended to replace, and crucially, treats South Africa differently from many of its competitors.
Donald MacKay, chief executive of XA Global Trade Advisors, said the tariff was an improvement on the previous 30% trade tax. The most aspect for South Africa was to be "significantly different to competitor countries," he said.
MacKay cautioned, however, that the underlying dynamic had not changed. "Trump wants a tariff. He is happy to make up whatever he needs to justify it."
After the US Supreme Court struck down Trump's sweeping global tariffs in February, the administration was forced to pursue a different legal route.
