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[FILE PHOTO]: A 3D-printed miniature model of U.S. President Donald Trump, US Flag and word “Tariffs”
The rand strengthened on Thursday with the Johannesburg Stock Exchange All Share Index also hitting a new record.
This as markets digest developments around the US tariffs impacts on South Africa’s economy.
The country faces a 30% tariff on its exports to the United States from Friday.
The tariff is expected to cost tens of thousands of jobs after the country failed to secure a trade deal before a deadline set by US President Donald Trump.
The local currency was trading at R17:71 on Thursday afternoon, continuing on a firm trajectory as the country anticipate a change in trade dynamics with the United States at midnight.
Chief Investment Officer at Makwe Fund Managers Makwe Masilela says the JSE All Share Index breached 100 000 points to a new record despite Trump tariffs officially taking effect globally.
“Generally, I mean even global markets today, they are all up and we know that we’ve got more than 90 countries that now will have the tariffs kicking in, but the markets have decided to ignore that it’s not only the local market and even when we look into the all share at some point, it managed to reach record highs, and maybe the reason is that all these things have been expected, factored in this whole thing was well telegraphed.”
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Meanwhile, International Relations and Cooperation Minister Ronald Lamola says that South Africa needs to explore other global economies.
Lamola spoke at the Freedom Dialogue at the Friedrich Naumann Foundation, which focused on the geopolitical developments, South Africa’s G20 Presidency, as well as the looming implementation of the US tariffs.
He says that although Washington remains a strategic partner, Pretoria’s economy needs to diversify.
“This market being unpredictable does need us as a country to bear risk, to diversify in terms of our economy. To build our own self-sustainability. To look at other markets across the globe. At least we already have what we believe is a reliable partner, the European Union. We need to build from that relationship, look at what is possible. And a market in China, with which the President had already built relations.”
