U.S. President Donald Trump has added a 30% tariff charge on all South African products, effective from 1st August.
President Trump, in a letter to his South African counterpart, Cyril Ramaphosa, stated that the 30% is separate from all sectoral tariffs.
He said the tariff charges follow years of nonreciprocal trading relationships and are to correct the "unsustainable trade deficits against the United States."
"We have had years to discuss our trading relationship with South Africa, and we have concluded that we must move away from these long-term and very persistent trade deficits engendered by South Africa's tariff and non-tariff policies and trade barriers," said Trump.
The U.S. leader further pointed out that the 30% being imposed is far less than what is needed to eliminate the trade deficit the U.S. has with South Africa.
President Trump also cautioned, "As you are aware, there will be no tariff if South Africa or companies within your country decide to build or manufacture products within the United States, and in fact, we will do everything possible to get approvals quickly, professionally, and routinely."
Trump threatened another tariff hike should South Africa choose to retaliate.
"If for any reason you decide to raise your tariffs, then whatever number you choose to raise them by will be added onto the 30% that we charge," Trump told South Africa.
The South African government is yet to respond to President Trump's decision. It has previously stated that it remains open to negotiations with the U.S. government.
Trade partners, including Japan, South Korea, and 12 others, have also received similar letters from the Trump administration.