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The 30% tariff hike: SA must strengthen diplomatic ties, diversify trade partnerships beyond the US

07 April 2025 Photo Supplied

Opinion article by Dr Calvin Mudzingiri, Assistant Dean: Economic and Management Sciences, University of the Free State, Qwaqwa Campus

The sudden hike of import tariffs by US President Donald Trump and his administration to countries across the world is set to reduce the volume of goods traded and affect citizen welfare across the globe. The Trump administration implemented a global 10% import tariff and a varying targeted reciprocal tariff to a host of countries, including South Africa. The reciprocal import tariff to be levied on South African export goods to the US is set at 30%. Historical data show that yearly trade between SA and US amounts to $23 billion and the US is SA’s the second biggest trading partner after China. The high tariff will reduce the competitiveness of South African export goods to American markets, leading to reduced demand of SA exports in US markets, low income to firms, job losses, low income to households and ultimately lower South African economic growth.

SA and US trade

South Africa exports platinum, locally assembled cars, raw aluminium, ferroalloys and agriculture products, among other goods, to the US. The implication of the US administration’s 30% tariff hike could result in job losses in the mining, automobile, agriculture and many other industries. More income losses to SA agricultural exports can also be experienced if the African Growth Opportunity Act (AGOA) expires in September 2025, if the US congressmen decide not to renew the agreement. Given the low economic growth rate in South Africa in 2024, which is estimated at 0.6%, the tariff hike by the US will exacerbate sluggish economic growth and recovery from the COVID 19 pandemic.

Statistics also show that SA imports energy products, machinery, vehicle, industrial and other consumer goods. The goods and services SA imports from the US play a critical role in developing and sustaining local industry. SA can decide to source the goods from other markets and if this happens with all economies where tariffs were imposed, the US will be worse off. There is a possibility that economies which received a tariff hike from the US will implement a reciprocal tariff hike to the US reducing the volume of global trade. The reduced trade volumes have dire implications for job creation, income generation by firms and households, making citizens worse off.

US current trade policy

It is important to note that President Trump administration’s trade policies are premised on a trade notion synonymous to ‘mercantilism’, which was practised in Europe between the 16th to 18th centuries. Under mercantilism, an economy aims to maintain a trade surplus, the government regulate the economy, discourage imports (in the case of the US using tariff hikes) and promote growth of home industries among other initiatives. Conventional economics wisdom has proved that policies pursued by the Trump administration of protectionism are a breeding ground for trade wars. There is great potential of fellow trading partners retaliating and if that happens, global citizens will be made worse off as they will be forced to pay high prices for goods due to additional costs driven by tariff hikes. In addition, US industry relies on raw materials from other countries. If the suppliers of raw material resources retaliate, the production cost model of US firms will rise, reducing export competitiveness of US exports.

Trump’s administration is calling for firms across the world to move and produce goods in the US to avoid tariff levies. The action works against the benefits of free trade and can affect firms’ comparative advantages. The production cost structure in the US can be higher than in other countries leading to firms realising low profits if they move to the US. It is essential to note that free trade with absolutely no trade barriers will enhance the welfare of citizens at large, since goods and services will be purchased at low prices. The US government’s act of over-regulating trade can limit economic growth not only of other countries but even that of the US economy.

Options for the SA government

In the face of trade adversity, the SA government must not fold its hands and do nothing. It is enlightening to note that the authorities have already initiated diplomatic and trade negotiations. Negotiations can possibly focus on tariff reduction, maintaining the AGOA, and delving deep in the logic used to arrive at the 30% tariff hike. The diplomatic initiatives must encompass improving perceptions and clarity of SA policies such as the Expropriation Act which is one of the reasons cited by the US administration in ratcheting the tariff trade war.

South Africa must re-orient its trading patterns and partnerships. The aggregate world gross domestic product (GDP) is greater than the US total production for goods and services. There is need for SA to improve trade relations with other economies to broaden its trade base. The current frosty trade relationship between SA and the US presents a window to strengthen trade with the EU, Asia, BRICS plus, Africa, and any other economy willing to get into trade partnerships. SA must explore other markets where the export goods still enjoy competitiveness.

To ensure economic resilience to trade wars in the long run, SA needs to seriously invest in research and development that promote value addition of local production, enhancing local production and technology advancement that can stimulate economies of scale, which can boost competitiveness of export goods. Competitiveness can be further enhanced by improving energy production efficiency, which is a crucial input of goods and services production. Developing a powerful and skilled human capital base can lead to labour productivity efficiency, further enhancing competitiveness. SA has a dilapidated infrastructure ranging from roads, rail, buildings and industry among others. Improving the infrastructure will go a long way in improving local production, leading to creation of jobs and improved incomes for households.

Boosting local economic activity can stimulate local consumption of goods as household income improves. If the incomes of SA citizens improve, there is a potential to increase local consumption. Goods meant for export markets can end up being consumed in the domestic markets, providing a homemade solution to dwindling export goods markets. The SA government must consider developing and supporting new industries that can compete in the local and international markets. In this way, the trade challenges posed by unfriendly US administration trade policies can present opportunities to the SA economy in the long run.

News Archive

The Kovsie woman hockey team back in the A Section for 2010.

2009-07-06

The Kovsie woman hockey team back in the A Section for 2010.

The University of the Free State (UFS) was this year the host of the University Sport South Africa (USSA) hockey tournament.

More than 660 hockey players from 17 tertiary institutions met in Bloemfontein to participate in the USSA Hockey tournament. After the National Senior Interprovincial hockey tournaments, the USSA tournament is seen as the second most important hockey tournament in South Africa. With the 34 teams that participated in the tournament on the Kovsie astro’s, it was the biggest hockey tournament in the country.

Finals Day (Day 5)

Double delight for Maties hockey

3 July 2009

JONATHAN COOK
at USSA Hockey Week in Bloemfontein

THE University Sport South Africa Hockey Week finals saw the University of Stellenbosch take the men's and women's titles, both against University of Johannesburg (UJ), at a chilly University of The Free State in Bloemfontein Friday.
There was also joy and disappointment for the promoted and relegated teams.
Hosts UFS (Kovsies) saw their men relegated back to the B Section (they had been promoted the year before at the USSA Hockey Week at North West University Pukke in Potchefstroom) and Wits return to the top level having won the B Section after their demotion last year.
Women's B Section winners in Bloemfontein Friday were Kovsies, the Free State girls now back in the A Section for 2010 after their demotion last year, while last year's promoted B Section side, University of KZN, go back to the second rung of SA university hockey after finishing last in the A Section in 2009.
Maties' men won a thrilling A Section final on a golden goal by captain Pierre de Voux after UJ had ended full-time 1-1 with the Stellenbosch men.
The women's final saw Maties run away to a 4-1 victory in the end as they finished the final in an impressive manner.
The men's and women's tournament teams, chosen under the direction of selection convenors Braam van Wyk (women) and Cheslyn Gie (men), were announced at the conclusion of the women's final at this superb hockey complex of which Kovsies have every reason to be proud.

RESULTS

Men's A Section: (1/2) University of Johannesburg 1 Maties 1 (Maties won on golden goal); (3/4) Tukkies 2 UKZN 2 (Tuks 5-4 penalty strokes); (5/6) UCT 1 NMMU 0; (7/8) Pukke 6 Kovsies 2.

Women's A Section: (1/2) Maties 4 University Johannesburg 1; (3/4) Pukke 1 Tukkies 1 (Pukke 4-2 penalty strokes); (5/6) NMMU 2 UCT 0; (7/8) Wits 2 UKZN 1.

Men's B Section: (1/2) Wits 2 Rhodes 2 (Wits won on golden goal); (3/4) Tukkies B 5 Central U of Tech 1; (5/6) Kovsies B 1 Cape Pens U of Tech 1 (Kovsies won 4-3 penalty strokes).

Other: Pukke B 2 Limpopo 0.

Women's B Section: (1/2) Kovsies 1 Rhodes 1 (Kovsies 4-3 penalty strokes); (3/4) Vaal U of Tech 3 Tukkies B 1.

Other: Central U of Tech 6 Limpopo 0, Pukke B 6 Cape Pens U of Tech 0.

2009 USSA HOCKEY TOURNAMENT TEAMS

Men: (Please note, for the men's team, SA players selected for Africa Cup in Ghana were not considered, while players were only considered who played 3 or more matches at USSA Hockey Week, as this is a Tournament team).

2009 USSA Men's Tournament Team

Goalkeepers: Jacques le Roux (Maties), Ben Mbana (Tukkies).

Defenders: Peter Bailey (NMMU), Oliver Whiteley (UJ), Kyle Rhodes (Tuks), Francois Pretorius (Tuks), David Wilson (Maties).

Links: Jonty Robinson (Tuks), Owen Mvimbi (UJ), Warren Grobler (Maties), Devon van der Merwe (UKZN), Brendon van Zyl (Tuks).

Forwards: Pierre de Voux (Maties), Geowynne Gamiet (NMMU), Brandon Panther (UJ), Duzo Khanyile (UKZN), Tebogo Lerole (UJ), Brett Pampara (Tuks).

2009 USSA Women's Tournament Team

Goalkeepers: Hanlie Hattingh (Maties), Camille Jasson (UJ).

Defenders: Cindy Brown (Maties), Mapule Mokoena (UJ), Lisa Deetlefs (UJ), Kim Hubach (Tuks), Dirkie Chamberlain (Tuks).

Midfielders: Vida Ryan (Maties), Farah Fredericks (Maties), Lesle-Ann George (Pukke), Loreen Irvine (Pukke), Ncedisa Magwentshu (Wits), Kathleen Taylor (Maties), Lenise Marais (Maties).

Forwards: Vidette Ryan (Maties), Roxy Turner (UJ), Shelley Russell (Maties), Sulette Damons (Pukke).

Umpire grading: Erik Etsebeth (SA 2).

Day 4: Maties and UJ in University Sport men's and women's hockey finals

2 July 2009

JONATHAN COOK
at USSA Hockey Week in Bloemfontein

THE impressive University of The Free State synthetic turf hockey pitches saw some thrilling clashes Thursday, as the University Sport South Africa (USSA) Hockey Week in Bloemfontein entered its penultimate day and with it, the cross-pool playoffs.

The playoffs determine who will play in Friday's men's and women's finals, and in the men's A Section it's going to be the University of Johannesburg (UJ) against the University of Stellenbosch (Maties) at 4.30 pm, while the women's A Section finals will also see UJ tackling Maties (6 pm).

Last year's men's winners in Potchefstroom, University of Pretoria (Tukkies), went down 4-2 to Maties (third in 2008) in a penalty stroke shootout after the score read 0-0 at full-time, this after 2008 finalists UJ beat fifth-placed team last year, the University of KwaZulu-Natal (UKZN), 4-0 in the first semi-final.

The first women's semi-final saw UJ, fourth last year, beat the third-placed team in 2008, North West University (Pukke), 3-1, while the late game Thursday for the second berth in the final was won 2-0 by defending champions Maties against last year's finalists Tukkies.

The B Section finals - and the four teams hoping that victory Friday will earn them promotion to the A Section - are the following:
Men: Wits University versus Rhodes University (B field 4 pm).
Women: University of The Free State (Kovsies) versus Rhodes (B Field 2.30 pm).

RESULTS

Men's A Section (playing for places 1-4): University of Johannesburg (UJ) (2) 4 (Owen Mvimbi, Brandon Panther, Olly Whitely, Miguel da Graca) UKZN 0; Maties 0 Tukkies 0 (Maties won penalty stroke shootout 4-2).

(5-8): Nelson Mandela Metro University (NMMU) (3) 6 (Geowynne Gamiet 3, Giovanni Joseph 2, Satch Reddy, Peter Bailey) Kovsies (Free State) (1) 1 (Jaco Fourie); UCT (1) 2 (Mike Heyink, Sean Fielding) Pukke (North West) (1) 2 (Matt Fairweather 2) UCT won penalty stroke shootout 9-8.

Women's A Section (playing for places 1-4): UJ (2) 3 (Pietie Coetzee 2, Lisa Deetlefs) Pukke (1) 1 (Sulette Damons); Maties (0) 2 (Kathleen Taylor, Cindy Brown) Tukkies 0.

(5-8): UCT (1) 3 (Imogen Holland 2, Jessica Kew); UKZN (0) 1 (Nosipho Dladla); NMMU (0) 1 (Jessie Heatley) Wits 0.

Men's B Section (playing for places 1-4): Wits 6 Tukkies B 1; Rhodes 5 Central U of Tech 1.

Other: Kovsies B (5) University of Namibia 4; Vaal U of Tech 2 University of Limpopo (Turfloop) 0; North Cape Urban FET 4 Cape Pens U of Tech 4 (CPUT won penalty stroke shootout 4-1).

Women's B Section (playing for places 1-4): Rhodes 0 Vaal U of Tech 0 (Rhodes 6-5 on penalty stroke shootout); Kovsies 1 Tukkies B 1 (Kovsies won 4-2 penalty strokes).

Other: Cape Pens U of Tech 1 Fort Hare 1; Central U of Tech 2 Cape Pens U of Tech 2; Pukke B 8 University of Limpopo (Turfloop) 0.

Usual Suspects heading for USSA Hockey Week finals

30 June 2009

JONATHAN COOK
at USSA Hockey Week in Bloemfontein

THE University of Pretoria's Tukkies men and the Maties girls of Stellenbosch look to be set on defending their University Sport South Africa (USSA) hockey titles with success judging by the happenings on day two of the annual tournament at a crisp University of The Free State (Kovsies) in Bloemfontein Tuesday night.
This 34-team tournament is the biggest in the country after the Masters IPT.
In the top-tier Men's A Section, last year's winners the University of Pretoria (Tukkies) enjoyed a stunning 5-0 victory over University of Cape Town (UCT), who were the late-fightback 3-2 winners over UKZN on Monday.
After 38 minutes Tukkies were one goal to the good via the stick of Mark Holliday, but in the next 19 minutes mayhem broke out as coach Dave Viney's men from Pretoria pumped four goals past UCT. Holliday grabbed another goal from field play, with Nic Gonsalves and Michael Sykes joining the Pretoria boys' party, and Kyle Rhodes slamming in a penalty corner for good measure.
Last year's men's finalists the University of Johannesburg gained a crucial 2-0 victory against Stellenbosch in a battle of wits that saw SA U21 head coach Kurt Cerfontyne (Maties) and his assistant at the recent Junior World Cup, Garreth Ewing, in different corners this time round.
UJ went 1-0 up via a Dean Symons action goal in the 22nd minute – and the rattled Maties then had two players, David Wilson (26th) and Murray Clarke (28th) sent to the sin bin. A Miguel da Graca goal from a penalty corner made the game safe for UJ.
It looks like we are going to see another Battle of Gauteng among the men – Tukkies against UJ – in this year's men's USSA Hockey Week final.
And last season's talented SA U18 hockey striker Symons - alongside his equally talented national U18 team-mate and current UJ strike partner Marc le Sueur – could have a major say should that final come to pass at 7.30 pm on Friday..
In the women's A Section, the 2008 winners in Potchefstroom, Maties, were far too good for UJ, overwhelming the Johannesburg team in the second half.
Although they could only get one more goal after the interval through Spar SA striker Vida Ryan to add to Cindy Brown's first-half brace, Maties could have scored a good few more. Louise Coertzen scored UJ's goal that made the first-half-score read 2-1 to Maties.
However, UJ still have a chance to get to Friday's 6 pm final should they (likely) finish second to Maties in Pool A and qualify to tackle the Pool B winners in the semi-finals at 4.30 pm Thursday.
Last year's women's finalists, Tukkies, met North West and the score was 1-1 at the end after the Pretoria team had led 1-0 at half-time through Dirkie Chamberlain. Chantelle Bekker replied for Pukke.
In the B Section, host university Free State's ambitious women (Kovsies) beat University of Fort Hare 7-0.

RESULTS

Men – A Section: Tukkies (1) 5 (Mark Holliday 2, Nic Gonsalves, Kyle Rhodes, Michael Sykes) UCT 0; U of Johannesburg (1) 2 (Dean Symons, Miguel da Graca) Maties 0; UKZN (2) 3 (Duzo Khanyile, Karl Oftebro, Sihle Ntuli) Kovsies (1) 1 (Paul Jordaan); Nelson Mandela Metro U (0) 2 (Nathan Kops, Wesley Wittstock) North West (1) 1 (Matt Fairweather).

Women – A Section: Wits (2) 3 (Kirsten du Toit, Robyn Taylor, Robyn Johnson) UKZN (0) 1 (Nosipho Dladla); Maties (2) 3 (Cindy Brown 2, Vida Ryan) UJ (1) 1 (Louise Coertzen); North West (0) 1 (Chantelle Bekker) Tukkies (1) 1 (Dirkie Chamberlain); UCT (1) 2 (Deidre Potgieter, Keren Robertson) Nelson Mandela Metro U (0) 1 (Jocelyn Coombs).

Men – B Section: North Cape Urban FET 4 Vaal U of Tech 1; Tukkies B 5 Limpopo Turfloop 1; Vaal U of Tech 1 Pukke B 0; Wits 5 Kovsies B 2; Central U of Tech 2 N Cape Urban FET 1; U of Namibia 3 Cape Pens U of Tech 0; Rhodes 4 Tukkies B 2; Central U of Tech 2 Kovsies B 1; Wits 10 Pukke B 1.

Women – B Section: Rhodes 5 Pukke B 0; Tukkies B 5 Cape Pens U of Tech 0; Kovsies 7 Fort Hare 0; Pukke B 4 Central U of Tech 0; Vaal U of Tech 8 Limpopo Turfloop 0; Kovsies 7 Central U of Tech 0.

Cold weather doesn't deter hot hockey at Kovsies
Varsities hockey week on fire

JONATHAN COOK
at USSA Hockey Week in Bloemfontein

Despite the cold weather, there was much to warm the cockles of one's heart on day one of the University Sport South Africa (USSA) Hockey Week at University of the Free State (Kovsies) in Bloemfontein Monday.
In the Men's A Section (the first division), the fancied University of Pretoria (Tuks) beat hosts Free State Varsity (Kovsies) 4-0 after leading by two goals at half-time. All the Tuks goals were field goals with the scorers being Jonty Robinson, captain Brendan van Zyl, Simon O'Callaghan and Malcolm Ratz.
The University of Johannesburg clash with Nelson Mandela Metropolitan University (NMMU of Port Elizabeth) went down to the wire, UJ eventually prevailing 2-1.
After a goalless first half, UJ's Tebogo Lerole opened proceedings from a penalty corner and Joezay Kops equalised for NMMU with 12 minutes to go. The winner came after the final hooter had sounded, umpire Erik Etsebeth correctly awarding a penalty corner to UJ, which meant the set-piece had to be concluded, and Brandon Panther netted a great deflection goal for the winner.
The Maties men versus Pukke match saw the Potch boys start shakily. The Stellenbosch side under SA U21 head coach Kurt Cerfontyne were 3-0 up before the Pukke got back into the game. Although it was fairly even from this point, the Pukke caught fire too late in order to catch the Maties cold.
On a hot-blooded day for the umpires, who got heat from the players on the field and from personnel on the benches, both teams in this match were complimented for their well-disciplined benches.
Tuks' women and NMMU played to a goalless draw in the Women's A Section before University of Stellenbosch (Maties) outplayed University of KZN 8-0 after leading 3-0 at the break. Spar SA striker Farah Fredericks bagged a hat-trick with national team-mates Cindy Brown, Vida Ryan and Kathleen Taylor also getting in on the act.
The Pukke of North West University beat University of Cape Town (UCT) 3-0 with Chantelle Bekker, Lesle-Ann George and Princess Khuzwayo getting among the goals.
The University of The Free State is to be congratulated on a splendid venue, with synthetic turf hockey pitches side-by-side and including proper technical areas on both fields plus a festive clubhouse facility.

RESULTS

Men – A Section: Tukkies (2) 4 (Jonty Robinson, Brendan van Zyl, Simon O'Callaghan, Malcolm Ratz) Kovsies 0; UJ (0) 2 (Tebogo Lerole, Brandon Panther) NMMU (0) 1 (Joezay Kops); UCT (2) 3 (Ant Vervoort 2, Simon van Helsdingen) UKZN (2) 2 (Dalan Phillips, Duzo Khanyile); Maties (2) 3 (Pierre de Voux, Shaun McIntyre, Rob Grant) Pukke (0) 1 (Matt Fairweather).

Women – A Section: Tuks 0 NMMU 0; Maties (3) 8 (Farah Fredericks 3, Candice Manuel 2, Vida Ryan, Cindy Brown, Kath Taylor) UKZN 0; Pukke (1) 3 (Chantelle Bekker, Lesle-Ann George, Princess Khuzwayo) UCT 0; UJ (3) 7 (Bernadette Coston, Roxanne Turner 2, Louise Coertzen, Sarah Harley 2, Nicole de Vries) Wits 0.

Men – B Section: UFS Reds B 2 N Cape Urban FET 2; Rhodes 7 Limpopo Turfloop 1; Wits 3 Central U of Tech 2; Tukkies B 4 Cape Pens U of Tech 0; Pukke B 0 NCU FET 2; UFS Reds 1 Vaal U of Tech 0; Namibia Uni 10 Limpopo 2; Rhodes 3 Cape Pens U of Tech 1; Pukke B 0 Central U of Tech 5.

Women – B Section: Rhodes 4 Central U of Tech 0; Pukke B 3 Fort Hare 0; Tukkies B 12 Limpopo 0; Vaal U of Tech 6 Cape Pens U of Tech 0; UFS Reds 3 Rhodes 2.

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