South Africa scrambles to protect key industries as Trump’s 30% tariffs threaten over $9 billion in exports
A Trade Earthquake Shakes SA
South Africa is bracing for impact as the US, under Donald Trump’s administration, announced a sweeping 30% tariff on South African exports, set to take effect on 7 August 2025. With nearly $10 billion worth of trade now in jeopardy, Pretoria has initiated urgent interventions to protect jobs and economic sectors already under immense pressure.
The Department of Trade, Industry and Competition (DTIC), led by Minister Parks Tau, has unveiled a strategic response aimed at shielding vital industries such as automotive, agriculture, steel, and chemicals. While the move may seem abrupt, insiders say tensions had been escalating for months. Read more about the US-SA trade dynamics here.
US Tariff Blow: What It Means for South Africa’s Export Economy
According to Tralac economist Eckart Naumann, $9.34 billion worth of South African exports—excluding critical minerals—are now vulnerable. These include citrus, aluminium, steel, and motor vehicles. Though 36% of SA’s 2024 exports to the US (mostly platinum group metals) are tariff-exempt, the remaining majority are not.
Key sectors like the Eastern Cape’s automotive industry are already buckling, with Mercedes-Benz temporarily halting operations. These impacts could cost the country up to 100,000 jobs, warned Reserve Bank governor Lesetja Kganyago.
Pretoria’s Counterstrike: A Five-Point Intervention Strategy
Minister Tau’s announcement on 31 July introduced an “Export Support Desk”—a one-stop advisory and coordination centre for businesses impacted by the tariffs. The desk will assist with market diversification, compliance guidance, and linkages to embassies in potential new markets.
Other measures include tax incentives for affected sectors, sourcing alternative global markets, and aligning policies with continental trade frameworks such as the African Continental Free Trade Agreement (AfCFTA).
The Political Earthquake Behind the Tariff Tsunami
While the tariff hikes are framed as reciprocal, many observers say the move is politically driven. Trump has repeatedly lashed out at South Africa’s Black Economic Empowerment (BEE) policies and diplomatic positions, citing “very bad policies” as a reason for withdrawing from the G20 Summit in Johannesburg.
In a recent Truth Social post, Trump declared: “The August 1 deadline is the August first deadline – it stands strong and will not be extended. A big day for America!”
DA vs DTIC: The Blame Game Intensifies
In a heated exchange, the Democratic Alliance (DA) accused the DTIC of “reckless foreign policy” and “failing to secure a viable trade deal.” DA finance spokesperson Mark Burke claimed the ANC’s global alliances with states like Iran had alienated potential economic partners.
In response, Tau condemned the DA’s remarks as “irresponsible and damaging” to South Africa’s united efforts. “This is not a time for political point-scoring,” he said on Radio 702.
A $12 Billion Counter-Offer: Pretoria’s Trade Lifeline
South Africa’s proposed counter-package to the US includes major concessions: importing 75–100 petajoules of US liquified natural gas, opening the poultry and blueberry markets to US producers, and committing $3.3 billion in investment by South African firms into American industries.
But the package faces uncertainty. Analysts like Trudi Hartzenberg from Tralac believe poultry import terms remain a sticking point, and the US has yet to respond formally.
Trade Diversification: Africa and the EU in Focus
While the US is South Africa’s second-largest export market, Tau emphasised the need to redirect trade flows. The DTIC’s plan prioritises partners in Africa, the EU, Asia, and Latin America. For instance, the EU, which receives 17% of SA’s exports, offers more predictable trade frameworks.
Explore how South Africa is leveraging EU trade ties.
Agoa and the End of Preferential Treatment
The African Growth and Opportunity Act (AGOA) has historically allowed South Africa tariff-free access to US markets. However, the Trump administration’s new tariffs override these benefits. Analysts warn that AGOA’s scheduled expiry in September 2025 might not be extended in its current form.
That means SA’s trade future hinges on securing sectoral deals or aligning with multilateral blocs. As things stand, Trump’s unilateralism could effectively end decades of preferential access.
Business Realities: Exporters Stagger, Markets Shrink
Exporters like citrus producers and steel manufacturers are reeling. While many citrus exports for this season are complete, 2026 will be the real test, says Donald MacKay from XA Global Trade Advisors. “There aren’t many markets left that can pay what the US does.”
Automotive manufacturers face a 25% sectoral tariff. That’s on top of potential BRICS-related levies, and South Africa’s competitors, the EU, Japan, and Mexico, have already secured better access under existing deals.
What Comes Next: Strategic Diplomacy and Domestic Action
Experts, including Daniel Bradlow from the University of Pretoria say SA’s trade strategy must be restructured around non-US dependencies. This means ramping up intra-African trade, boosting regional infrastructure, and building capacity in financial and trade development institutions like Afreximbank.
Bradlow adds, “Even if a Democrat wins in 2028, the tariffs may stay. SA needs to reset, not just negotiate.” The call now is for deeper diplomacy, real industry consultation, and a pivot to self-reliance backed by bold regional cooperation.
Also read: Donald Trump Orders ‘100% Tariff’ on All Movies Made Abroad, Claims Hollywood Is Being ‘Devastated’
