Forced Labour?: SA unlikely to reverse Trump’s new 12.5% tariff

South Africa's attempts to overturn the new 12.5% import tariff imposed by the U.S. on July 24 appear unlikely, as the measure seems driven more by political concerns than genuine worries about forced labor. The South African Trade, Industry and Competition Minister, Parks Tau, announced the tariff despite extensive consultations with the U.S. Trade Representative and various stakeholders.

Tau mentioned that he intends to issue regulations prohibiting goods made with forced labor and child labor, but this is unlikely to persuade the U.S. administration to reverse the tariff. The tariff is primarily about finding a more solid legal basis for continuing to impose global tariffs after previous attempts were ruled illegal.

The U.S. has imposed the tariff on 59 countries, including the EU, and 86 countries overall, suggesting it is targeting trade volumes rather than forced labor. South Africa is better off now than it was under the previous 30% tariffs imposed under the International Emergency Economic Powers Act, and the reauthorization of the African Growth and Opportunity Act (AGOA) has also boosted exports to the U.S.