The 30% tariff that the US imposed on South African exports could drag the country into a potential economic setback, as economists anticipate it could shave off 0.2% from the country’s growth.
This information was shared by the Minister of Internal Relations and Cooperation, Ronald Lamola, during a joint briefing on US tariffs with the Minister of Trade, Industry, and Competition, Parks Tau.
The new tariff will take effect at midnight on August 8.
Lamola expressed concern, highlighting that the US’ decision undermines South Africa’s efforts to rebuild strong and stable relations with President Donald Trump’s government.
“South Africa has been engaging the US at various levels with a view to ensure predictability in trade,” Lamola said.
“However, even with these efforts, the US decided to impose a 30% unilateral tariff on South Africa.
“It is unfortunate that some actors within South African society have undermined this government’s efforts to reset the relationship with the US.”
Third-largest trade partner
He said the US remains South Africa’s third-largest trade partner, accounting for 7.5% of total exports.
He stated that the new tariffs will not affect 35% of South Africa’s current exports.
This includes copper, pharmaceuticals, and energy products, but there is growing concern about long-term effects.
“Importantly, due to South Africa not enjoying a country exemption for Section 232 duties on steel and aluminium, South African companies have already adjusted to the Section 232 duties since 2018.
“However, the heightened policy uncertainty creates instability in trade and may have an impact on exports.
“The new tariff regime implemented by the United States is a significant departure from a low-tariff environment.
“This policy shift, which affects not only South Africa but the entire world, has already led to higher tariffs than before, changing the landscape of global trade as we know it.”
Committed to principled approach
He said the tariff increase was unjustifiable, as South Africa makes up only 0.25% of total US imports and poses no threat to US industries or national security.
South African exports, he continued, support and do not compete with US manufacturers, especially in agriculture, where Lamola said exports are counter-seasonal and fill supply gaps.
According to Lamola, South Africa played a role as a major investor in the US, with 600 US companies operating locally to drive industrial growth and employment.
He said: “South Africa is committed to a principled approach, and we will continue to use all available diplomatic channels to negotiate a mutually beneficial trade deal with the United States, one that respects our national interests while advancing our long-standing partnership.
“Such a deal will be pursued in a pragmatic manner that preserves regional integration and the Sacu [Southern African Customs Union] common external tariff, noting that Sacu accounts for 9% of our global exports and must be preserved.”
New trade and investment packages
South Africa is also accelerating efforts to diversify trade, Lamola said, highlighting that partnerships are being strengthened with countries across Africa, Asia, the Middle East, and Europe.
Recent agreements, he said, include a R90-billion investment package from the EU under the Clean Trade and Investment Partnership, which will help open new markets for sustainable fuel and electric vehicles.
He stated that South Africa has made progress in agriculture by securing export protocols with major markets like China and Thailand, which unlocks opportunities for products such as citrus.
The government is also negotiating new trade and investment packages with other countries, such as Japan, while identifying untapped potential in ASEAN (Association of Southeast Asian Nations) and Turkey.
