- The US has proposed to enforce new tariffs on car imports as the global trade war escalates
- "Interested groups" in South Africa are prepared to take the US to court for violating South Africa's rights under the African Growth and Opportunity Act
- South Africa has also threatened to cancel chicken and meat quotas from the US if the tariffs on car imports is imposed
The United States's proposed tariffs on cars imported from South Africa has resulted in SA preparing to take USA to court as the tariffs violate the rights of SA under the African Growth and Opportunity Act (AGOA).
Rob Davies, SA’s Trade and Industry Minister, reported that a group of "interested" people were preparing to challenge the US's decision which is a result of the trade war which has gripping the globe.
During the BRICS Forum in Sandton, Davies said that the trade war launched by Donald Trump is no longer a "phony war".
South Africa is not a direct participant in the global trade war but nevertheless is being affected and already beginning the feel the effects of the imposed import duties on steel and aluminium.
Briefly.co.za learned that the next salvo being fired in the trade war is a planned tariff on vehicle imports and Davies pleaded with the US Commerce Secretary Wilbur Ross not to impose the tariffs on SA car imports which only make up 0.4% of US car imports according to the dailymaverick.co.za.
Ross’s response must not have been what Davies had wanted as the planned lawsuit is going ahead.
As a response the South Africa government was threatening to cancelling chicken and meat import quotas from the US if the US proceeded with the import tariffs on cars.
BRICS countries have agreed to work more closely together to reduce the negative affects of the trade war on their economies.
Another way South Africa is planning on reducing the impact of the trade war was to increase trade within the African continent. Currently South Africa exports close to 25% of its good to Africa with 56% of these being finished goods.
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