South African Business Confidence Climbs In July Despite Rising Concerns Over US Tariff Impact

Source: Reuters.

The South African Chamber of Commerce and Industry's Business Confidence Index rose to 116.7 in July, up from 113.2 in June.

The business chamber releases the index every two months. June's business confidence level was lower than May's 115.8 reading before July's rebound.

The chamber said the 30% tariff on South African exports to the US that kicked in last week could weigh on sentiment in the remainder of the year.

"The imposition of a general tariff of 30% by the USA on exports from South Africa to the USA could have unintended and austere consequences for the South African economy and for longer-term business relations," the South African Chamber of Commerce and Industry (SACCI) said in a statement.

South African officials were planning to submit a revised trade deal offer to Washington on Tuesday to try to secure a lower tariff or exempt major industries.

Months of negotiations with US President Donald Trump's administration have so far failed to produce a deal.

SACCI said it was important that South Africa does everything possible to have positive trade relations with the US given subdued economic growth forecasts for this year and next.