South Africa said it will submit a revised offer for a US trade deal in an attempt to lower the 30% tariff rate imposed on exports from Africa’s biggest economy.
The duty, which came into effect on Aug. 7, is the highest tariff imposed on a sub-Saharan African country.
“The new offer substantively responds to the issues the US has raised” to build on a previous offer made in May, the government said on Tuesday. But the leader of the Democratic Alliance, the second-largest party in South Africa’s coalition government, told Reuters the 30% tariff is likely to remain in place unless Pretoria changes some domestic race policies. US President Donald Trump has previously criticized affirmative action initiatives designed to redress inequalities caused by apartheid.
South African officials have warned the tariff threatens 30,000 jobs in the country, with the key automotive and agricultural sectors most vulnerable. However, JPMorgan said on Tuesday that the levy was likely to have a limited effect on South Africa’s markets because traders have “largely priced in the reality of higher tariff headwinds.”
