Trump tariff negotiations may extend global economic uncertainty, warns S.Africa bank chief

The central bank governor of South Africa, Lesetja Kganyago, cautioned on Thursday that ongoing trade negotiations stemming from U.S. President Donald Trump’s tariff strategy may lead to prolonged uncertainty in global financial markets. During a media briefing in Washington, Kganyago, who oversees the South African Reserve Bank, emphasized that bilaterally driven negotiations could be protracted, potentially impacting economic stability for an extended period.

As South Africa holds the G20 presidency until November 2025, Kganyago faces the complex challenge of coordinating discussions among diverse members, including the U.S., China, and the European Union. This week, during the World Bank and International Monetary Fund’s Spring Meetings, finance ministers and central bank governors gathered in Washington, where discussions of Trump’s tariffs were central, as confirmed by South African Finance Minister Enoch Godongwana.

It is noteworthy that the G20 did not release a communique or an official statement following the meetings, which is rather unusual. Kganyago remarked on the significant uncertainty affecting global financial markets due to these trade measures. He stated, "The negotiations taking place are very resource-intensive," highlighting the challenge of moving forward under the current circumstances.

Furthermore, he advocated for a return to a multilateral trading system, underscoring the importance of the World Trade Organization in facilitating these discussions. The current environment necessitates urgent attention to trade relations, which remain delicate and fraught with unpredictability.