In a significant display of unity, China and South Africa have joined forces in opposing recent U.S. tariff policies, warning that such measures pose a serious threat to global economic stability. This coordinated stance reflects the broader BRICS+ alliance’s commitment to countering protectionist policies while advocating for a fair and inclusive international trade system.
At the 10th BRICS summit in Johannesburg, Chinese President Xi Jinping reaffirmed the bloc’s position against trade wars and unilateral economic policies. “We should be resolute in rejecting unilateralism. A global trade war should be rejected because there will be no winner,” Xi stated.
South African President Cyril Ramaphosa echoed similar sentiments, emphasizing the negative effects of U.S. trade restrictions on developing economies. “We are concerned by the rise in unilateral measures that are incompatible with World Trade Organization rules and are worried about the impact of these measures, especially on developing countries,” he noted.
The United States has imposed stringent tariffs on various Chinese exports, citing unfair trade practices and national security concerns. The Trump administration initially levied tariffs on Chinese steel and aluminum imports in 2018, a policy largely upheld by the Biden administration. Most recently, the US has targeted Chinese electric vehicles and solar panels, citing concerns over state subsidies and unfair market advantages.
South Africa, despite its strong trade relations with both China and the United States, has not been spared from the ripple effects of these tariff disputes. South Africa exported approximately $518.68 million worth of iron and steel to the United States in 2024, according to data from the United Nations Contrade, hence the U.S. 25% tariff on steel and aluminium imports is set to affect South African exports, with Trade Minister Ebrahim Patel warning that approximately 7,000 South African jobs are at risk due to the imposed duties.
As China remains Africa’s largest trading partner with trade volumes reaching $295 billion in 2024 any disruptions to China’s export markets can indirectly impact African economies. South Africa, a major exporter of minerals and industrial components, relies on a stable global trade environment to sustain its economic growth.
A Coordinated BRICS Response
The BRICS bloc, which now accounts for over 37.3% of global GDP overtaking the G7 has responded by pushing for greater intra-BRICS trade and a reduced reliance on the U.S. dollar. In August 2023, BRICS leaders announced their intention to expand trade using local currencies, with discussions underway to establish a BRICS-led alternative financial system.
Russian Foreign Minister Sergey Lavrov emphasized the need for a more balanced global trade structure. “The collective voices of BRICS nations must be strengthened. The era of Western economic dominance is being challenged, and the Global South must stand together,” Lavrov stated at a recent BRICS economic forum.
Meanwhile, Brazil, another BRICS member, has opted for dialogue rather than immediate retaliation against U.S. steel and aluminum tariffs. Brazilian Finance Minister Fernando Haddad stressed the importance of negotiations over confrontation, saying, “It is in our best interest to engage diplomatically while also strengthening economic alliances with fellow BRICS nations.”
China has taken strategic measures in response to U.S. tariffs, summoning executives from major U.S. corporations, including Walmart, to discuss concerns over pricing and supply chain disruptions. Beijing has also increased its support for domestic industries, offering incentives for local firms to expand into emerging markets like Africa and Latin America.
“China is not just defending its trade interests, it is actively reshaping the global economic order,” said Professor Chen Wenling, Chief Economist at the China Center for International Economic Exchanges. BRICS is becoming a more prominent counterweight to the West, and trade disputes with the U.S. are accelerating this shift.
In addition, China has redirected agricultural imports from the U.S. to alternative suppliers. Australian and Brazilian farmers, for instance, have benefited from increased Chinese demand for wheat, soybeans, and beef as China seeks to diversify its import sources.
As BRICS continues to expand its influence, its approach to trade disputes with the U.S. will shape the future of global economic governance. At the next BRICS summit, experts perceive key discussions will center on strengthening trade cooperation, finalizing agreements on alternative payment systems, and increasing trade in local currencies.
For South Africa and other African economies, deeper BRICS integration could provide a much-needed buffer against global trade volatility. As the U.S.-China trade dispute escalates, BRICS nations are positioning themselves as leaders in advocating for a multipolar world order one that prioritizes inclusivity, economic fairness, and sustainable development.
