The South African rand has continued its downward trend against the US dollar following the announcement of higher tariffs by President Donald Trump.
On Thursday morning, the local currency fell to R18.83 to the dollar, edging closer to the R19 mark. This sharp decline is attributed to heightened risk aversion, with the full impact of the new tariffs still uncertain. The rand’s current value represents the weakest level since mid-January.
On Wednesday, President Trump unveiled a 30% baseline tariff on all imports from South Africa, a move that has sparked concerns among traders and economists about the potential impact on the country’s exports.
In the midst of this financial turbulence, the South African government's fiscal framework was approved after weeks of political disputes. However, the Democratic Alliance voted against the framework, signaling plans to challenge the outcome in court. This has raised further concerns about the stability and future of the Government of National Unity (GNU).