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Tuesday, May 6, 2025

South Africa outline measures, as US tariffs take effect

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A 31% tariff imposed by the United States on South African imports takes effect on Wednesday and has prompted a strategic response from the South African government.

 

The tariffs affect various sectors, including automotive, agriculture, and manufacturing, with potential impacts on jobs and economic growth.

 

ALSO READ: Wesgro supporting exporters amid Trump tariffs

 

International Relations Minister Ronald Lamola and Minster of Trade Industry and Competition, Parks Tau, in a statement on 4 April, outlined several measures South Africa would take to mitigate the impact of these tariffs. They noted that the US accounted for 7.45% of South Africa’s total exports in 2024. South Africans only accounted for 0.4%.

 

“South Africa will continue to navigate the challenges and opportunities these measures present with resilience and innovation,” the statement read.

 

 

The country intends to negotiate for favourable trade agreements, targeting exemptions and preferential access to the U.S. market. Efforts will also be made to diversify trade relations by expanding exports to markets across Africa, Asia, Europe, and the Americas, as well as to foster regional trade cooperation through the African Continental Free Trade Area (AfCFTA).

 

“South Africa will leverage the African Continental Free Trade Area (AfCFTA) to bolster intra-African trade, fostering stronger regional economic integration and cooperation.”

 

They also highlighted encouraging industries to transform raw materials into finished goods, thus reducing exposure to tariffs while stimulating domestic growth.

 

The statement also noted that the reciprocal tariffs do not apply to several critical products, such as copper, pharmaceuticals, and certain minerals, which are essential to U.S. industries. However, the tariffs do diminish the preferences granted under the Africa Growth and Opportunity Act (AGOA), further complicating trade dynamics.

 

 

Meanwhile, Lamola has expressed interest in negotiating for a better trade agreement. This is as representatives of Japan, South Korea, Italy and Israel are said to be holding talks with the US soon to discuss new trade agreements.

Caitlin Maledo
Caitlin Maledo
Caitlin is an enthusiastic journalist, that has been exploring her interest in broadcast media since 2019. With a natural curiosity for the world around her, you'll always find her poking around hidden gems throughout Cape Town and surrounds.

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