SOUTH AFRICA – The South African Chamber of Commerce and Industry (SACCI) has warned that South Africa cannot afford to make economic enemies as tensions escalate in the ongoing trade war between the United States and China.
China, a BRICS member, responded to US President Donald Trump’s reciprocal tariffs by increasing levies on American goods from 84% to 125%. This followed Trump’s announcement of a 10% baseline tariff on all goods entering the US, later pausing the increase for 90 days for select countries — excluding China but including South Africa.
Speaking to Highveld Chronicle, SACCI President Advocate Mtho Xulu advised against retaliatory action from South Africa in response to the US’s 31% tariff hike.
“South Africa has always been committed to fair global trade standards negotiated at the World Trade Organisation,” said Advocate Xulu. “Our position is that we should not be punitive to any economy — we can’t afford to have economic enemies.”
Although he acknowledged the tariffs would impact sectors such as automotive, agro-processing, and agriculture, Xulu emphasised the importance of diplomatic engagement.
“South Africa must continue to engage and highlight its strategic importance to the US. At the same time, we must diversify our markets because tariffs are inevitable. They’re a form of taxation,” he explained.
Xulu called for the promotion of intra-African trade and deeper engagement with global partners such as BRICS. “Africa must trade with itself, but not in an insular or restrictive way. It must align with global free trade and globalisation standards,” he said.
He added that South Africa, being a highly industrialised nation, stands to benefit significantly from intra-African trade but warned against using it as a way to avoid American markets.
“We must do it because it is in our interest to diversify and grow our global market access,” Xulu concluded.
