South Africa’s Ramaphosa offers Trump a trade deal as rand hovers near a five-month high before budget talks

South African President Cyril Ramaphosa offered U.S. President Donald Trump a trade deal during discussions on August 7, 2025, as the South African rand hovered near a five-month high ahead of the country’s budget talks. According to South Africa’s presidency, Ramaphosa instructed his team to urgently engage with the U.S. using a framework deal aimed at addressing trade imbalances following Trump’s announcement of a 30% tariff on South African imports.

South Africa’s government described the tariff as unilateral and based on the U.S. view that trade between the two countries was “far from reciprocal,” a position disputed by South African officials who said the tariff did not reflect existing trade data. President Cyril Ramaphosa noted in a phone call with Trump on Aug. 7 that South Africa would continue diplomatic efforts to achieve a “more balanced and mutually beneficial trade relationship,” according to a statement from South Africa’s presidency.

The 30% tariff on South African imports announced by U.S. President Donald Trump took effect on Aug. 1, 2025, marking the highest tariff imposed on any sub-Saharan African country, according to BBC reporting.

Ramaphosa instructed his negotiating team to urgently engage with the U.S. using a Framework Deal submitted on May 20, 2025, which aims to address U.S. concerns over South Africa’s trade surplus, alleged unfair trade practices, and lack of reciprocity. The presidency said the two countries’ trade negotiation teams agreed to continue discussions following the missed deadline for a trade agreement. Reuters reported that the two sides had been attempting to finalize a trade deal for several months, with South Africa still awaiting a template from the U.S. for the next phase of negotiations.

South African officials emphasized that the tariff could be modified depending on the outcome of ongoing negotiations, with Ramaphosa stating that the response would be handled through the respective negotiating teams. The presidency confirmed that both leaders agreed to further interactions on bilateral trade matters during their phone conversation. Reuters noted that Ramaphosa and Trump committed to more in-depth discussions through their trade teams.

South Africa relies heavily on preferential access to the U.S. market through the African Growth and Opportunity Act (AGOA), which has benefited key sectors such as automotive, agriculture, and textiles by providing duty-free access. John Steenhuisen, South Africa’s agriculture minister, said the U.S. tariff announcement implied a possible termination of AGOA, which could threaten the continuity of preferential trade arrangements. Ramaphosa has publicly highlighted the importance of extending AGOA to sustain trade ties.

The U.S. is South Africa’s second-largest trading partner after China, according to Le Monde and BBC reports. South African officials argued that over half of U.S. imports into South Africa are not subject to tariffs, and the average tariff on the remaining imports is 7.6%, based on figures cited by Ramaphosa. The government framed the tariff as a threat to jobs, exports, and industrial competitiveness.

The tariff dispute comes amid broader economic challenges in South Africa, with the rand hovering near a five-month high ahead of the country’s budget talks. The government has been seeking to stabilize trade relations while managing fiscal and economic pressures. Ramaphosa used the trade issue to advocate for fairer global trade rules and increased support for the Global South.

The White House meeting on May 21, 2025, was described as an effort to reset bilateral relations and pursue a trade deal, but tensions remain due to disagreements over policy, reciprocity, and market access. The South African presidency stated that the bilateral process was ongoing, with negotiations continuing despite the missed deadline for a formal agreement.