South Africa heading for even deeper trouble

US President Donald Trump has threatened to place an extra 10% tariff on countries who align themselves with the BRICS bloc of countries. 

This comes as Trump accuses the group, founded by Brazil, Russia, China, and South Africa, of anti-American policies. He also warned other countries against joining the bloc. 

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff,” Trump said Sunday night in a Truth Social post. “There will be no exceptions to this policy.”

Trump has also previously threatened to slap 100% levies on BRICS if they ditch the US dollar in bilateral trade. 

The pushback, in turn, has spurred interest in developing local payment systems and other instruments that can facilitate commerce and investment between the nations.

On Sunday, BRICS leaders agreed to continue talks on a cross-border payment system for trade and investment — a project they’ve been discussing for a decade, though progress has been slow.

The BRICS nations were holding a summit over the weekend in Sao Paulo, where leaders condemned US and Israeli attacks on Iran. 

These leaders also raised the alarm over the rising global trade tariffs, which threaten to disrupt the global economy and impact their export-dependent economies. 

The United States is preparing to send tariff letters to dozens of countries in the coming days as the 90-day pause on higher duties is set to expire on 9 July. 

President Trump had initially implemented a 10% across-the-board tariff on all imports into the United States, alongside higher reciprocal tariffs for ‘worse offenders’. 

South Africa was hit with the 10% tariff and a higher 30% additional duty on imports prior to the pause to allow for negotiation. 

The country does not appear to have secured a trade deal with the United States as yet, making the reversion to the elevated tariffs likely on 9 July. 

Treasury Secretary Scott Bessent signalled that some nations without deals in place could have the option of a three-week extension to negotiate, with the levies set to take effect on 1 August.

South Africa in the crosshairs

South Africa has been in President Trump’s crosshairs since he took office at the beginning of the year, with the African country being singled out for its anti-American behaviour. 

The latest condemnation of South Africa came from United States Representative for Florida, Greg Steube, who introduced a Bill to Congress that would suspend direct assistance to the local government and impose targeted sanctions on political officials. 

“It is clear as day that the Government of South Africa is unfairly targeting the State of Israel and inciting hostility towards the United States and our allies,” said Representative Steube in the press statement.

“South Africa’s purported grievances against Israel are nothing more than antisemitism wrapped in a bad-faith interpretation of international law,” he said. 

“America has no business engaging with a corrupt government that weaponises its political system against the Jewish people while jeopardising our national security interests by indulging terrorist organisations and their sponsors.” 

“That is why I have proposed cutting off all direct assistance to South Africa and sanctioning their leaders until they stop abusing international institutions and catering to Iran and its terrorist proxies.”

Steube pointed to the support offered by the South African foreign minister following the 7 October attacks on Israel by Hamas. 

Two months following the 7 October attacks, Hamas sent a senior delegation to South Africa for the Fifth Global Convention of Solidarity with Palestine. 

Shortly thereafter, the ruling ANC welcomed representatives of Hamas for formal meetings in Johannesburg.

In 2023, Iran and South Africa signed a cooperation agreement expanding economic ties between their two nations, including the development of five oil refineries in South Africa by the Iranian Oil Ministry.

Steube’s Bill also claimed that South Africa has increasingly aligned itself with authoritarian regimes and global actors hostile to the United States’ national interests and democratic values. 

As a result, the Bill stated that United States taxpayer dollars should not be used to subsidise governments that engage or legitimise such conduct.