The Congress of South African Trade Unions (COSATU) is deeply concerned about the pending 30% tariff hike on South African exports to the United States (US), the world's largest economy, announced by US President Donald Trump and fear the devastating impact it may have on an economy that has been languishing at 1% growth since 2008 and a dangerously high unemployment rate of 43.1%.

Sectors most at risk include the automotive and other manufacturing industries, agriculture, clothing, chemicals and jewelry. Depressingly, the pending tariff hike comes in the wake of the Eastern Cape facing 900 jobs on the line at Good Year SA and more with Mercedes Benz "temporarily" shutting down its vehicle production.

COSATU is confident that the Presidency and the Departments for Trade, Industry and Competition, International Relations and Cooperation and Agriculture's engagements with their counterparts in the United States' Government will bear fruit and that a mutually beneficial trade agreement can be secured before the pending 1 August implementation of the proposed 30% tariff hike. The Federation will continue to work closely with the South African government in support of their endeavours on behalf of the nation.

We hope the US Congress will simultaneously renew the African Growth and Opportunities Act before the end of September as its tariff free regime for 35 Sub-Saharan countries, including South Africa's exports to the US have helped nurture key growth sectors and facilitate regional integration across the African continent.

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COSATU will also be seeking urgent engagements with the Department of Employment and Labour, the Unemployment Insurance Fund and the CCMA at Nedlac on decisive interventions to tackle the UIF's Temporary Employee Relief Scheme's administrative challenges to enable them to offer affected companies real time support whilst they put in place plans to manage this potential economic blow.