South African Rand Weakens amid US Tariff Extension on BRICS Countries

The South African rand weakened sharply following U.S. President Donald Trump's announcement of additional tariffs targeting countries aligned with BRICS, with a threatened 10% extra duty and a 31% tariff already in place for South African exports. Trump extended the tariff deadline to August 1, providing a brief window for further negotiations, though market sentiment remains fearful of escalating trade tensions. The move has unsettled emerging market currencies and heightened concerns over South Africa's export competitiveness, particularly in key industries like agriculture and mining, with tens of thousands of jobs at risk. South Africa's government disputes the accuracy of the tariff rates and is seeking to negotiate exemptions for critical exports in exchange for expanded U.S. LNG imports. The developments have put South Africa's political alignment with BRICS and its relationship with the U.S. under scrutiny, with the U.S. Congress considering a review of bilateral relations. Economists warn that continued uncertainty and protectionism could keep the rand volatile in the coming weeks.