South Africa looks to increase trade with India, China in face of huge US tariffs

Johannesburg: South Africa is looking at expanding its trade with India and China as it faces the prospect of a 30 per cent tariff imposed on it by US President Donald Trump, Deputy President Paul Mashatile said on Monday.

“The geopolitics at the moment really requires that we should be engaging other nations as well. We know that we are one of the US’s biggest trading partners, but there is nothing that says that we should not intensify our trade relations with India, China and other countries,” Mashatile told a gathering of business and community leaders.

He was speaking at the inaugural breakfast event hosted by the Ahmed Kathrada Foundation, named after the late Indian-origin freedom activist who served one less year than the 27 of Nelson Mandela as a political prisoner of the minority white apartheid government.

Mashatile also commented on South Africa’s G20 presidency this year as an opportunity to benefit the entire continent.

“Solidarity for us is very important. We should use the G20 to make sure that after our presidency, we can look back and say we were able to give not only to South Africa but to the continent."

“I’m hoping that with the G20, we will be able to work with other countries to ensure that we also strengthen solidarity and focus on economic development, not only of South Africa but the continent,” he said.

Mashatile said there was also opportunity to make sure that the Africa Continental Free Trade Agreement is implemented.

“So, we are bringing that on board as well (since) Africa itself as a continent is a big market. We must begin to look as a country to where else can we begin to improve trade relations, people to-people relations, but also to become self-reliant as a country,” Mashatile said as he shared that the European Union had visited a fortnight ago and expressed a desire to work more with South Africa.

The deputy president said South Africa would not impose any retaliatory tariffs after Trump announced 30 per cent tariffs on South Africa and earlier stopped all aid to the country, but would continue to engage with the US government.

This was despite strained relations between the two countries over the issue of South Africa charging Israel with genocide at the International Criminal Court over its war on Gaza and the US declaring South Africa’s Ambassador Ebrahim Rasool persona non grata after he made remarks about Trump in a public debate.

“President Ramaphosa said let’s not rush, let’s engage; let’s use our diplomatic channels to engage with the US administration,” Mashatile said, conceding that that trade wars would not benefit anyone, as consumers would be the ultimate victims.

Reacting to a question on whether South Africa did not need a Department of Government Efficiency, such as the one headed by billionaire Elon Musk under Donald Trump’s presidency, Mashatile said there was a similar effort in place in the local presidency to address government wastage.

“It is true that in some areas of government we do find wastage. In some areas you find that departments are given money that they don’t spend on time, including local government, so Operation Vulindlela is meant to do the exact thing that Musk is trying to do in the US,” Mashatile said.

“We are looking at economic reforms, cutting red tape and looking at areas where there is wastage,” Mashatile said, adding that this structure reports directly to President Cyril Ramaphosa.

Mashatile also lauded the lifelong commitment of Kathrada to bring democracy to the majority Black community in South Africa.

“Even when he came back from prison after many years, he did not go and stay home and say I’m retired. He went back into the trenches, making sure that our people should finally be free and be able to transform their lives and ensure that we have a better life,” he said.

Mashatile said the foundation needed to continue the conversations about Kathrada’s legacy of commitment to setting goals for non-racialism, non-sexism and gender equality.