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Business

Lamola Urges Unity Amid Escalating US Trade Dispute

Town Press
Last updated: August 4, 2025 2:54 pm
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Town Press
August 4, 2025
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International Relations and Cooperation Minister Ronald Lamola has criticised opposition parties for failing to present a united front on issues of national importance, following the United States’ decision to impose a 30 percent tariff on South African imports. The criticism comes amid growing concerns over the country’s trade relationship with the US.

Speaking alongside Trade, Industry and Competition Minister Parks Tau at a media briefing held at the Germiston Civic Centre in Ekurhuleni, Lamola called for collective national action in the face of what he described as a complex and high-stakes international issue.

He urged political parties, civil society, business leaders and all sectors of society to rally together in defence of South Africa’s economic interests.

The tariffs, introduced by the administration of US President Donald Trump, are set to take effect at one minute past midnight on August 8.

While other African nations such as Lesotho and Zimbabwe will face a 15 percent tariff, South Africa has been subjected to a significantly higher rate, raising speculation that diplomatic tensions between Pretoria and Washington may be worsening.

Lamola maintained that the government has made a concerted effort to improve trade relations with the US since the formation of the seventh administration.

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In May, South Africa submitted a comprehensive proposal designed to address the trade imbalance, encourage investment, enhance digital trade, and remove barriers not related to tariffs. Despite these efforts and continued dialogue, the US opted to implement the tariff increases unilaterally.

The minister acknowledged that the US has taken similar steps against both allied and rival nations, suggesting that South Africa should not view itself as being uniquely targeted. Instead, he emphasised the need for calm, strategic engagement and unity in navigating the fallout.

Opposition voices, however, have accused the government of diplomatic missteps. The Democratic Alliance (DA), which holds the second-largest presence in the Government of National Unity, laid the blame on Lamola and Tau for failing to negotiate a more favourable outcome.

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DA trade spokesperson Toby Chance argued that the absence of a permanent South African diplomat in Washington hampered the country’s position during crucial talks. He also pointed to missed deadlines and a delayed submission of trade terms as contributing factors.

Chance contrasted South Africa’s outcome with that of Botswana, which succeeded in reducing its tariff rate from 37 percent to 15 percent. He said South Africa should have been able to secure similar terms.

The DA itself has not escaped criticism. Earlier in the year, several of its senior members, including then deputy trade minister Andrew Whitfield, travelled to Washington to engage US stakeholders over the future of the African Growth and Opportunity Act (AGOA).

President Cyril Ramaphosa later dismissed Whitfield for making the trip without official clearance. The DA defended the mission as being in line with national foreign policy, but the ANC viewed it as irresponsible and unauthorised.

Lobby groups such as AfriForum, Solidarity, and the Freedom Front Plus have also travelled to the US independently. Their visits, motivated by concerns over land reform, farm attacks, and inflammatory political rhetoric at home, were seen by Lamola as undermining South Africa’s diplomatic efforts.

He reiterated that acting in isolation harms the collective interest and stressed that the consequences of disunity could affect the entire nation.

President Ramaphosa also addressed the issue in his weekly letter to the public. He acknowledged the challenges posed by the US decision, but emphasised that South Africa is not the only nation experiencing such measures. Several developed and developing economies, including many in Africa, are also dealing with increased US tariffs.

The president described the two countries’ trade relationship as historically complementary. South African exports typically do not compete with US products but rather support American industries by providing essential inputs.

He also highlighted that South Africa is the largest African investor in the US, with 22 companies active across various sectors, including mining, chemicals, pharmaceuticals and food production.

Both Lamola and Ramaphosa expressed a commitment to continued dialogue and cooperation, but insisted that internal cohesion will be key to navigating the growing trade tensions.

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TAGGED:International Relations and Cooperation Minister Ronald LamolaMinister Parks TauUnited StatesUS Tariff Hike
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