Davies calls for Trump tariff exemptions, warns against taxes on cars



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The Minister of Trade and Industry, Rob Davies, again advocated for a tariff exemption on steel and aluminum exports to the United States. United States. a tariff of 10% on imports of aluminum products and a tariff of 25% for steel, beginning of March.

Davies is part of the SA delegation participating in the 17th Africa Forum on Growth and Opportunity (AGOA) in Washington DC.

He spoke with the US Trade Representative, Robert Lighthizer, and Secretary of Commerce Wilbur Ross, as well as with US Senators Chris Coons and Johnny Isakson.

The Minister, in a statement issued Sunday, said that South Africa's steel exports to the United States accounted for less than 1% of total US imports and 0.3% of the total steel demand of the United States. Aluminum exports accounted for about 1.6% of total US imports of aluminum.

"It is clear that SA does not pose a threat to US national security and the steel and aluminum industries." South Africa is not part of countries that have benefited from tariff exemptions.

The Industrial Organization of the Federation of Steel and Engineering Industries of Southern Africa (SEIFSA) said in May that steel tariffs could cost local exporters around R3 billion.

Davies also expressed concern during his meeting with the impact of an ongoing US survey on the collection of customs tariffs on car imports and of automotive components.

SA represents 0.4% of total US imports of automotive products.

Davies stated that "one of the South African automakers would not export more automobiles to the United States" – he did not say which – if tariffs were established.

This comes after Ross announced in late May that he would begin an investigation into the collection of customs duties on imports of cars and related components in the United States.

"There is evidence to suggest that for decades, imports from abroad have eroded our domestic auto industry," Ross said in a statement on May 23.

"The Department of Commerce will conduct a thorough, fair and transparent investigation into whether these imports weaken our domestic economy and may be detrimental to national security."

South Africa sold its automobile production industry as a source of direct foreign investment. President Cyril Ramaphosa was on hand when, in late June, Mercedes-Benz announced an expansion of R10bn from its current car plant in East London.

"[Mercedes-Benz] made an investment in the people of this country, where he drove, we expect a lot of other companies to follow," said the president at the time.

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