South Africa Eyes Stronger Trade Ties with India and China Amid US Tariff Threat

Johannesburg, April 7 — South Africa is looking to expand trade relations with India and China as it prepares to face potential 30% tariffs from the United States, Deputy President Paul Mashatile said on Monday. Addressing business and community leaders at a breakfast hosted by the Ahmed Kathrada Foundation, Mashatile stressed the importance of diversifying trade partnerships in a shifting geopolitical climate.

South Africa Responds to US Tariffs with Diplomacy​

Mashatile acknowledged the long-standing trade ties between South Africa and the US but emphasized the need to strengthen economic engagements with countries like India and China.

“We know that we are one of the US’s biggest trading partners, but there is nothing that says we should not intensify our trade relations with India, China, and other countries,” he stated.

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Despite the US President Donald Trump’s decision to impose a steep tariff and suspend aid, Mashatile clarified that South Africa would not retaliate. Instead, the country would continue diplomatic efforts to resolve tensions.

“President Ramaphosa said let’s not rush, let’s engage; let’s use our diplomatic channels to engage with the US administration,” Mashatile explained, warning that trade wars would ultimately hurt consumers.

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Strengthening Continental Solidarity Through the G20​

As South Africa assumes the presidency of the G20 this year, Mashatile underscored the opportunity to uplift not just the nation, but the entire African continent. He expressed optimism about using the G20 platform to advance economic development and solidarity.

“We should use the G20 to make sure that after our presidency, we can look back and say we were able to give not only to South Africa but to the continent,” he said.

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Boosting the Africa Continental Free Trade Agreement​

Mashatile also reiterated the government’s commitment to implementing the Africa Continental Free Trade Agreement (AfCFTA), positioning Africa as a major global market.

“Africa itself as a continent is a big market. We must begin to look as a country to where else we can begin to improve trade relations, people-to-people relations, but also to become self-reliant,” he stated, revealing that the European Union had recently expressed interest in strengthening ties with South Africa.

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Government Reforms Inspired by Efficiency​

Responding to a suggestion that South Africa needs a government efficiency department like the one led by Elon Musk in the US, Mashatile pointed to local initiatives already in motion. He cited Operation Vulindlela as a major step towards cutting red tape, reducing waste, and pushing for economic reform.

“It is true that in some areas of government we do find wastage… Operation Vulindlela is meant to do the exact thing that Musk is trying to do in the US,” he said, noting the program reports directly to President Cyril Ramaphosa.

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Honouring Ahmed Kathrada's Legacy​

The event, hosted by the Ahmed Kathrada Foundation, commemorated the legacy of the Indian-origin anti-apartheid activist. Mashatile praised Kathrada’s unwavering dedication to justice and transformation.

“Even when he came back from prison after many years, he did not go and stay home and say I’m retired. He went back into the trenches,” he said, encouraging the foundation to continue promoting non-racialism, non-sexism, and gender equality.

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Mashatile's comments reflect South Africa’s strategic pivot in response to global economic pressures, while continuing to uphold democratic values and regional cooperation.