Niël Terblanché
The Southern African Customs Union (SACU) has called on the United States to reconsider its planned tariff increases, warning they could harm trade relations and reverse development gains in Least Developed Countries (LDCs) and those under the African Growth and Opportunity Act (AGOA).
The SACU Council of Ministers made the appeal in a joint communique after their recent meeting in Johannesburg.
The council, chaired by finance minister Erica Shafudah, urged the U.S. administration to apply the principle of differential treatment and exempt LDCs and AGOA-eligible countries from the new tariffs set to take effect in July.
The U.S. had planned to implement reciprocal tariffs from 9 April 2025, but these were suspended for 90 days to allow for negotiations.
“While we recognise that the reciprocal tariffs have been paused for 90 days, effective until July 9, 2025, and a universal 10% rate will now apply in the interim, the uncertainty for SACU exports to the U.S. remains,” the joint communiqué reads.
The ministers expressed concern that unilateral decisions like these pose a threat to global trade systems.
“The Member States of SACU have noted with concern the rise in unilateral measures that fragment global trade,” the communique said.
SACU consists of Botswana, Lesotho, Namibia, South Africa, and Eswatini. These countries trade with the U.S. under the “Most Favoured Nation” principle and preferential programs such as AGOA and the U.S. Generalised System of Preferences (GSP).
According to SACU, these agreements have supported mutually beneficial trade and encouraged U.S. investments and joint industry supply chains.
The council warned that the proposed tariff changes could shift exports away from processed goods to raw materials, hurting manufacturing and jobs.
The ministers said this shift risks reversing progress made through trade cooperation with the U.S.
“Such measures risk reversing the developmental gains achieved through cooperation with the U.S., gains that have helped lift millions out of poverty in the SACU region and across Africa,” the communique states.
SACU members plan to work together on strategies to reduce possible disruptions.
“We will continue to assess the impact of current U.S. trade measures on industries, exports, and jobs while exploring diplomatic channels and trade negotiations to strengthen our position,” the council said.
The meeting ended with an agreement amongst council members to keep engaging the U.S. and to pursue trade deals that promote fair market access and industrial growth.
