The South African Presidency has expressed concern over sweeping tariffs imposed by the United States, which have targeted 60 countries, including South Africa. Under the new measures announced by President Donald Trump, all exports to the U.S. will face a 10% levy, with South African goods subjected to a steep 30% tariff.
Presidency spokesperson Vincent Magwenya criticized the move, calling it a barrier to trade and economic growth.
"While South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity," Magwenya stated.
Economic Fallout for South Africa
Economist Waldo Krugel from North West University warned that the new tariffs could severely impact South African exports, making them less competitive in the U.S. market.
"These tariffs will increase the cost of South African goods for U.S. consumers, reducing demand and potentially leading to job losses and economic strain," Krugel explained.
Key industries, including citrus farming, wine production, and automotive manufacturing, are expected to suffer the most. South Africa’s citrus, fruit, and wine exports, which rely heavily on the U.S. market, could see a sharp decline, while the automotive sector may struggle to maintain sales of vehicle components and parts.
A Shift in Global Trade Policies
Krugel highlighted that such high tariffs are unprecedented in modern trade history, calling them a significant departure from decades of tariff reductions.
"We haven’t seen tariffs this high since the 1920s. Regular exporters are used to tariffs of around 3% or 5%, but now we’re looking at 30%—figures that haven’t been seen in years," he said.
Potential for Negotiation or Escalation
Despite the immediate concerns, Krugel noted that President Trump’s strategy often involves using tariffs as a negotiation tool.
"Trump is known for making bold tariff announcements and then delaying implementation to allow for negotiations. There may be room for adjustments in the coming weeks," he added.
However, if no agreements are reached, a global trade war could escalate, with other nations retaliating against U.S. exports, driving up costs worldwide.
South Africa’s government has emphasized the urgency of negotiating a new bilateral trade agreement with the U.S. to ensure long-term stability. Meanwhile, neighbouring Lesotho faces an even harsher blow, with its exports now subjected to a staggering 50% tariff, raising further economic concerns for the region.