Aluminium Federation of South Africa says tariffs will level playing field
The global trade landscape is shifting once again, with President Trump announcing a 25 per cent tariff on foreign aluminium imports effective 12 March 2025, scrapping exemptions that once shielded certain countries, lets unpack how this may or may not impact South African exports to the United States. CNBC Africa is joined by Hugo Pienaar, Chief Economist at the SA Minerals Council and Muzi Manzi, CEO of the Aluminium Federation of South Africa.
Wed, 12 Feb 2025 11:11:04 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The South African aluminium industry is expected to withstand the impact of the new tariffs, as they affect a wide range of global producers and not individual countries.
- The broader implications of the tariffs extend beyond manufacturing and include potential repercussions on other industries, such as the motor industry and manufacturing sector.
- Challenges such as potential retaliations, uncertainties, and the risk to AGOA benefits pose concerns, but the industry remains optimistic about its resilience and growth prospects.
The global trade landscape is once again in flux with President Trump announcing a 25 per cent tariff on foreign aluminium imports, effective March 12, 2025. This move has eliminated exemptions that protected certain countries, raising questions about its impact on South African exports to the United States. In a recent interview on CNBC Africa, Hugo Pienaar, Chief Economist at the SA Minerals Council, and Muzi Manzi, CEO of the Aluminium Federation of South Africa, shared their insights on the potential effects of these new tariffs. Muzi Manzi expressed confidence that the South African aluminium industry would not be significantly impacted by the tariffs, as they are part of a broader global market and not individually targeted. Despite concerns about potential retaliations and uncertainties, both guests remained optimistic about the industry's resilience and ability to navigate the shifting trade landscape. As Muzi Manzi highlighted, the industry is currently healthy, with investments flowing into secondary alloy smelters and opportunities emerging in the renewable energy sector. The collaboration between government and industry, coupled with a focus on localisation, positions the industry for growth and participation in upcoming infrastructure projects. While challenges remain, such as the potential impact on AGOA benefits and broader economic implications, both guests underscored the industry's readiness to face these challenges and seize opportunities for growth.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
