South Africa is bracing for a large economic blow. The country has been forced to develop a counter strategy in response to new tariffs implemented by the United States, currently its third-largest trading partner. Now, the U.S. is preparing to impose a 30% tariff on nearly all imports from South Africa—in only four days. Local government officials are concerned that if created this could result in the loss of some 30,000 jobs in industries reliant on exports. The situation has prompted President Cyril Ramaphosa to call for swift adaptation measures as the country navigates this challenging trade landscape.
South African officials have expressed dismay by the tariffs. The U.S. represents an historically high 7.5% share of the country’s global exports, further exacerbating this alarming trend, including agriculture and manufacturing. These tariffs would hit hard on sectors that depend on exports to the U.S. As International Relations Minister Ronald Lamola noted, it’s the same story even for countries which enjoy the most privileged access to Washington’s corridors of power. This situation highlights the tenuous nature of global trade relations amidst the new tariffs.
In a welcome show of foresight, South Africa’s government is actively trying to diversify its export markets, with an emphasis on deepening intra-African trade. Combined with other complementary actions, this strategy will lead to reduced harmful impacts the tariffs have caused. An Export Support Desk has been set up. Its intent is to assist US manufacturers and exporters find new, emerging markets for their goods so they can better adjust in the face of the shifting trade landscape.
As federal government, we have been actively convening the United States to improve mutually beneficial trade and investment relations. Then, all channels of communication were crossed to lobby the U.S.- Senior Government Official
These new tariffs are coming down with steel and aluminum tariffs as South Africa is reeling underbaked down tariffs at the moment—high unemployment rates. In reality, the de facto rate actually hit 32.9% in Q1’25. The youth unemployment rate has jumped to 40%. It went from 44.6% in late 2024 to 46.1% at the beginning of 2025. These disturbing numbers are the tip of the iceberg of an impending disaster. Fumbling the tariff crisis could cost thousands of our nation’s workers their jobs, further aggravating an already tenuous employment picture.
Despite the challenges posed by these tariffs, certain sectors in South Africa remain exempt, accounting for about 35% of exports to the U.S. The government too is very much interested in keeping these markets intact. Yet at the same time it is actively negotiating new openings with China and Thailand, where we’ve had tremendous success in establishing trade protocols for important products like citrus.
Business leaders have chimed in as well. The Business Leadership South Africa (BLSA) expressed concerns that U.S. tariffs pose a severe threat, particularly to manufacturing and farming sectors in regions like the Eastern Cape. They focus on the need for urgent interim relief to allow businesses to adjust to these challenges.
Simphiwe Hamilton, an expert on economic sectors affected by the tariffs, stated, “We base this on the ongoing consultations that we have with all the sectors of the economy from automotive, agriculture, and all the other sectors that are going to be impacted.”
