Money and trade experts rang alarm bells on Thursday about the big harm from the new 30% taxes on South African goods sent to America under Trump. They warn that many parts of South Africa's economy will be hurt badly. They tell South Africa to sell more goods to other places, mainly BRICS countries. "We must sell to new places, look more to BRICS nations, and change how our economy works right away," said money expert Duma Gqubule on the phone.
Parks Tau, who runs Trade and Industry for South Africa, agrees with this plan to find new buyers. He spoke at a money meeting in Johannesburg about how many countries are making selfish trade rules these days. Tau warned that "doubt caused by one-sided trade taxes, which break WTO rules," would bring "major problems" for South Africa's money system. He stressed, "Finding new trade friends is very much needed."
Farms, car makers, and factories will face the worst pain, say those who study these things. They point out that these taxes pretty much kill the African Growth and Opportunity Act (AGOA), a 2002 trade deal that let South Africa and other African lands sell stuff to America with no extra fees. "We should know that AGOA has ended," Gqubule stated. "AGOA died last night. If it still worked, these taxes would not hit South Africa. That's what we face today," he added.
Matthew Parks from the big worker group called the Congress of South African Trade Unions also warned about how these taxes will harm jobs and companies. "If they put these taxes in place, AGOA is dead," he said. "A 50% tax jump would make selling abroad not worth it, forcing businesses to find other places to sell. However, a trade fight would hurt not just Africa but also places like China, Brazil, and India. If other lands fight back with their extra taxes, we might all crash our money systems," he made clear.
Bonke Dumisa, who studies money matters on his own, said Trump's tax news was not a shock and noted that South Africa was picked out for this. Even though South Africa plans to talk with Washington, Dumisa thinks the country can't do much to change Trump's mind. Dumisa said the taxes mostly hit cars and car parts, which makes things hard since some cars built in South Africa and sold to America are from U.S. brands. "These cars are made here because it makes money sense," he said.
Car makers would feel great pain, as about 37% of South Africa's cars go to America. Farms would also be hurt bad, as they send 70% of what they grow to America, along with chemicals, pretty stones, and other items. Parks asked all hurt countries to use the World Trade group to fix trade fights rather than just hitting back.
Parks Tau, who runs Trade and Industry for South Africa, agrees with this plan to find new buyers. He spoke at a money meeting in Johannesburg about how many countries are making selfish trade rules these days. Tau warned that "doubt caused by one-sided trade taxes, which break WTO rules," would bring "major problems" for South Africa's money system. He stressed, "Finding new trade friends is very much needed."
Farms, car makers, and factories will face the worst pain, say those who study these things. They point out that these taxes pretty much kill the African Growth and Opportunity Act (AGOA), a 2002 trade deal that let South Africa and other African lands sell stuff to America with no extra fees. "We should know that AGOA has ended," Gqubule stated. "AGOA died last night. If it still worked, these taxes would not hit South Africa. That's what we face today," he added.
Matthew Parks from the big worker group called the Congress of South African Trade Unions also warned about how these taxes will harm jobs and companies. "If they put these taxes in place, AGOA is dead," he said. "A 50% tax jump would make selling abroad not worth it, forcing businesses to find other places to sell. However, a trade fight would hurt not just Africa but also places like China, Brazil, and India. If other lands fight back with their extra taxes, we might all crash our money systems," he made clear.
Bonke Dumisa, who studies money matters on his own, said Trump's tax news was not a shock and noted that South Africa was picked out for this. Even though South Africa plans to talk with Washington, Dumisa thinks the country can't do much to change Trump's mind. Dumisa said the taxes mostly hit cars and car parts, which makes things hard since some cars built in South Africa and sold to America are from U.S. brands. "These cars are made here because it makes money sense," he said.
Car makers would feel great pain, as about 37% of South Africa's cars go to America. Farms would also be hurt bad, as they send 70% of what they grow to America, along with chemicals, pretty stones, and other items. Parks asked all hurt countries to use the World Trade group to fix trade fights rather than just hitting back.
