Pretoria: Trade, Industry and Competition Minister Parks Tau has announced that the South African government will maintain its engagement with the United States regarding the 12.5% tariff imposed on South African exports.

According to South African Government News Agency, the United States Trade Representative (USTR) imposed these tariffs on products from 60 economies following Section 301 Investigations regarding the failure of these economies to effectively enforce prohibitions on goods produced with forced labor. South Africa is among the 41 economies identified by the USTR as not imposing effective measures against forced labor practices.

Consequently, South Africa faces a 12.5% tariff, while 19 other economies that have laws prohibiting the importation of goods produced using forced labor are subjected to a 10% tariff. It is noteworthy that products already subjected to Section 232 tariffs, such as automobiles, auto components, steel, and aluminum, are exempt from the Section 301 tariffs.

Minister Tau highlighted that the USTR has published a list of products exempted from the Section 301 tariffs, detailed in Annex I and Annex II of the Federal Register. Exempted products of interest to South Africa include macadamia nuts, citrus fruits, tea, spices, seeds, cane sugar, juices, chemicals, critical minerals, platinum-group metals, isotopes, civil aircraft parts, and pharmaceuticals.

The decision by the USTR follows numerous submissions and consultations with the South African Government, Organized Labour, and the private sector, including a public hearing by the US Section 301 Committee earlier this month.

South Africa plans to publish a notice in the Gazette requesting public comments on a proposed regulation to prohibit goods produced using forced and child labor. The government aims to continue discussions with the USTR in hopes of eliminating or reducing the current tariff imposed on South African exports. -SAnews.gov.za