SOUTH AFRICA UNVEILS RESPONSE TO LOOMING 30% US TARIFF

Mon 04 August 2025:

The United States’ decision to impose a 30% tariff on South African imports has sent shockwaves through local industries. As the country’s second-largest trading partner, the US provides vital market access for agriculture, automotive and textile exports.

Economists warn that the tariffs could threaten jobs and disrupt supply chains that have been built over decades.

In his weekly newsletter, President Cyril Ramaphosa stated that the announcement highlights how quickly global trade conditions can change. He warned that South Africa would need to adapt its approach to survive in the face of these changes.

“The decision by the United States to impose a 30% tariff on South African imports highlights the urgency with which we have to adapt to increasingly turbulent headwinds in international trade,” Ramaphosa said.

Ramaphosa explained that trade between South Africa and the US has traditionally been non-competitive. Exports from South Africa have primarily supported US industries rather than replacing domestic products.

“Our trade relations have historically been complementary… South African exports do not compete with US producers and do not pose a threat to US industry,” he said.

The president also noted that South Africa is a significant investor in the US economy, contributing to job creation and industrial growth in America. He said this mutually beneficial relationship had been overlooked in the tariff decision.

“South Africa is also the biggest investor from the African Continent into the US… South African imports ultimately benefit US consumers in terms of both choice and cost,” Ramaphosa said.

The government has pledged to shield local industries from the worst effects of the tariff hike. Officials say new measures will help companies find alternative markets and protect employment.

“Our foremost priority is protecting our export industries… We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade,” Ramaphosa said.

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Trade Ministers Outline US Tariff Response

Ministers stated that, despite months of engagement aimed at strengthening ties with Washington, the tariff announcement undermines the progress made. They emphasised that South Africa had already proposed a framework deal to address bilateral trade concerns.

“Since the beginning of the 7th Administration, South Africa embarked on a process to stabilise and enhance mutually beneficial trade and investment relations with the US… However, even with these efforts, the US decided to impose a 30% unilateral tariff on South Africa,” the statement said.

They argued that South Africa’s contribution to US imports is too small to justify the steep tariff. The ministers said that the move ignores the complementary nature of trade between the two nations.

“Our minimal 0.25% share of total US imports makes the 30% tariff… inscrutable… Our exports are crucial inputs that support America’s own industrial base… and are even counter-seasonal,” they said.

To limit the damage, the government unveiled an Economic Response Package to help affected industries. Ministers said new measures include “an Export Support Desk… a Localisation Fund Support… [and] an Export and Competitiveness Support Programme… to address short- to medium-term needs across all industries.”

They added that a “Block Exemption for Exporters” would allow collaboration to improve market access and infrastructure.

Officials acknowledged that the tariff could slow economic growth but insisted that long-term solutions are already underway. They highlighted efforts to expand trade in Asia, the Middle East and other regions.

“We are proactively and collaboratively diversifying our trade portfolio… making significant inroads into new, high-growth markets,” the ministers said.

“While the current measures present challenges, they also present opportunities to… accelerate the implementation of the AfCFTA and… develop new partnerships in markets that have remained untapped, including ASEAN and Türkiye.”

written by Thaabit Kamaar

This article originally published in Salaamedia click here