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The Public Servants' Association has expressed concern about the United States' unilateral decision to impose a 30% tariff on South African exports from April 5th.
US President Donald Trump announced the tariff hikes last week.
In a statement on Monday, the PSA said the move poses a significant threat to the country's economy, key industries, and the livelihoods of thousands of workers.
It said the tariff hike will have a devastating impact on South Africa's already fragile economy.
“The US alleges that South Africa imposed a 60% tariff on American goods. However, the Minister of Trade, Industry and Competition has disproved this claim, stating that South Africa’s actual tariff rate is 7.6%,” said spokesperson Claude Naicker.
“This will likely lead to factory closures, job losses, and reduced economic growth, further aggravating South Africa’s unemployment crisis.”
In addition, the PSA said that South Africans are struggling with increased electricity costs and a recent VAT hike, which have further strained household incomes. The additional burden of these tariffs will worsen the cost of living and deepen economic hardships for the general public, particularly low-income earners.
“The PSA welcomes South Africa’s planned visit to the US for trade discussions and urges President Cyril Ramaphosa to prioritise these negotiations. It is imperative that South Africa takes swift diplomatic action to secure an amicable solution that protects jobs, stabilises the economy, and ensures fair trade relations.”
"The Presidency must act decisively to prevent further harm to South African industries and ensure that workers and businesses are protected from the negative consequences of these unfair trade policies," Naicker added.
