By Daanyaal Matthews
The global tariffs imposed by United States President Donald Trump are set to take effect today, with countries like China facing a 104% tariff and South Africa hit with a 30% tariff. The move has drawn sharp criticism from leaders across the African continent, as it threatens the African Growth and Opportunity Act (AGOA) agreement. South Africa’s Minister of Trade, Industry and Competition, Parks Tau, stated that the implementation of these tariffs effectively nullifies the trade benefits outlined in AGOA.
Speaking on VOC NewsBeat, Ulrich Joubert, Independent Economist, states that the tariff introduction have caused sweeping – negative – changes to global markets with local commodities, such as gold, dropping in value. Joubert ties these losses to economic uncertainty that has dominated sentiment across the globe.
“We’ve seen major movements in the global economy, financial markets, and commodity prices. This reflects the uncertainty in world markets—because no one truly knows what the full impact of these tariffs will be,” Joubert explained.
Joubert noted that the AGOA agreement has played a crucial role in the success of South Africa’s automotive and agriculture sectors. He warned that the 30% tariff could severely affect these industries and potentially result in job losses.
“Those two areas [the agriculture and automotive industries] in the South Africa economy, if they are adversely affected by those tariffs, it indicates to us that we could face some job losses,” theorized the economist.
Listen to the full interview here:
