South African rand firmer on Trump's new tariff threats

Updates prices, adds analyst comment to paragraphs 4-5

By Tannur Anders and Sfundo Parakozov

JOHANNESBURG, Feb 10 (Reuters) - South Africa's rand was slightly stronger on Monday after U.S. President Donald Trump announced fresh tariff plans, adding to worries over a global trade war.

At 1503 GMT, the rand traded at 18.4050 against the U.S. dollar ZAR=D3, about 0.1% firmer than its previous close.

Trump said on Sunday he would introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties.

"The South African rand is likely to face pressure from President Trump's proposed tariffs on aluminium and steel," said Zain Vawda, market analyst at MarketPulse by OANDA.

"A drop in U.S. demand could reduce export revenues, with emerging market currencies like the rand remaining sensitive to tariff developments and shifts in market sentiment."

Analysts said South Africa may face further risks after Trump signed an executive order cutting U.S. financial assistance to the country on Friday, citing disapproval of its land policy and of its genocide case at the International Court of Justice against Washington's ally Israel.

South Africa's sovereign dollar bonds were trading flat or slightly higher by 1508 GMT, regaining small early losses, but standing in contrast to bigger gains for most other African sovereigns, including Nigeria, Angola, Kenya and Ivory Coast.

South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 3.5 basis points to 9.1%.

On the stock market, the Top-40 .JTOPI index closed up about 0.4%.