South African rand slips as US tariff and budget worries linger

JOHANNESBURG, March 28 (Reuters) - South Africa's rand slipped on Friday, as concerns lingered over U.S. President Donald Trump's tariffs and an impasse between the ruling coalition's two biggest parties over the state budget.

At 1507 GMT, the rand traded at 18.3975 against the dollar ZAR=D3, about 0.8% weaker than its previous close.

The markets have remained on tenterhooks for further clarity from Trump after his announcement of tariffs on automotive imports, which will take effect from midnight on April 3.

Domestically, government partners the African National Congress and the Democratic Alliance have been at loggerheads for weeks over a VAT hike proposal in the national budget, which is yet to be passed.

Local news website news24 reported on Friday that the ANC rejected the DA's request that the two parties reach a deal on the shared management of economic policy. It said the DA had pinned its support for the budget on securing such an agreement.

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

South Africa's benchmark 2030 government bond ZAR2030= was marginally weaker, with the yield up 0.5 basis point to 9.155%.