Faith Nyasuguta
South Africa, Africa’s most industrialised economy, is bracing for a sharp economic blow as the United States imposes a 30% tariff on a wide range of South African exports beginning next week. This follows the collapse of crucial trade negotiations between the two nations and forms part of U.S. President Donald Trump’s renewed efforts to revise U.S. trade deals in favour of domestic industries.
The tariff hike is part of a broader executive order signed by Trump, targeting multiple countries with new tariff rates ranging between 10% and 41%. South Africa, however, will be hit with one of the steepest penalties – 30% – which will impact major export sectors including automotive manufacturing, steel, agro-processing, and chemicals.
For months, South African officials had been in talks with Washington to avoid the tariffs, offering significant concessions including the purchase of U.S. liquefied natural gas (LNG) and committing $3.3 billion in investment pledges into American industries. But despite these efforts, the U.S. administration rejected Pretoria’s proposals.
South African Trade Minister Parks Tau described the tariffs as a “direct threat” to export-driven industries and warned they could result in large-scale job losses. “This move puts thousands of South African jobs at risk and undermines decades of trade cooperation,” he stated.
The U.S. is South Africa’s second-largest bilateral trading partner after China, with key exports including cars, iron and steel products, citrus fruits, and wine. In 2023 alone, South Africa exported over $10 billion worth of goods to the United States, a significant portion of which will now be taxed under the new policy.
Beyond trade, political tensions have further complicated negotiations. Since Trump’s return to the White House in January 2025, relations between the two nations have deteriorated. Washington has openly criticised South Africa’s domestic policies, including its Black Economic Empowerment (BEE) programme, land reform plans, and its recent legal case accusing Israel of genocide at the International Court of Justice (ICJ). These issues, according to sources close to the talks, created an atmosphere of mistrust that affected trade discussions.
Trump has repeatedly attacked South Africa’s policies in public speeches and on social media. He has falsely claimed that the South African government is forcibly seizing land from white farmers – a narrative the South African government strongly denies. Officials in Pretoria say the land reform programme is a legal, constitutional effort to redress historical injustices stemming from apartheid, and stress that no land seizures without compensation have taken place.
The new tariffs come at a sensitive time for South Africa, which is already grappling with high unemployment, a struggling currency, and slow economic growth. Analysts warn that the tariff blow could further weaken investor confidence and increase inflationary pressures if exporters pass costs on to consumers.
Despite the setback, South African officials say they are exploring other diplomatic and trade channels to mitigate the impact and are considering escalating the issue through the World Trade Organization (WTO). Meanwhile, business leaders across the country are urging the government to accelerate trade diversification and reduce dependency on U.S. markets.
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