Johannesburg University economist Peter P Urr said, 25% of US fees in steel and aluminum exports can lead to increased costs, which can affect businesses, lead to employment losses, and control the vast economy.
US President Donald Trump said Fees are applied to import metals from all countries.
P. UR emphasized the need for the SA to divert trade relations.
Chowdan: Trump’s charges How do you affect steel and aluminum exports?
P Ur: These charges are S.A. They add 25% costs for exports, which is more expensive for US buyers. If a ton of steel first costs 10 Grand, the US government is now collecting an additional $ 250 per ton, which increases prices. American companies absorb cost, reduce profits or send it to consumers, raise the price of cars, equipment and other goods.
Chowdan: S.A. What does this mean for businesses and workers?
P Ur: It creates great challenges. With reduced exports, S.A. Decreasing production, which leads to job losses, especially in the mining and manufacturing sectors. Workers with special skills may struggle to find new jobs, and unemployment worse. Some sectors like gold miner may benefit from raising gold prices worldwide, but as a whole, the economy is getting a success.
Chowdan: What impact these fees have on the vast economy?
P Ur: Fees produce ripple effects beyond just trade. As far as SA is concerned, the loss of the United States as a major business partner is reduced by foreign income and affects our economy. The government must now find new trade ties such as the EU, China and other BRICS countries to offset lost revenues. This change does not take place overnight, which means that the short -term economic recession is possible.
Chowdan: What should SA’s answer to these economic challenges?
P Ur: The government should focus on strengthening trade ties with other regions, especially in Africa, BRICS countries and European markets. African trade camps such as the SADC and the African Union provide opportunities for regional growth, but we must ensure fair trade agreements that protect local economies.
At the same time, diplomacy with the United States is very important. While Trump’s policies are disrupted, cutting down relationships with the United States will be damaged. Talking about favorable trade agreements when diversifying our markets is the best approach.
Sowetanlive
