Pretoria presses Washington to reverse tariffs

President Cyril Ramaphosa has said that the South African government will continue negotiations with the United States (US) over the imposition of punishing 30% reciprocal tariffs set to take effect on 7 August.

While “noting with concern” the impending duties on South African products, Ramaphosa said that “government has been engaging the US.”

He also confirmed that South Africa, through the Department of Trade, Industry and Competition (dtic), remains in active dialogue with the US regarding its submitted Framework Deal.

“All channels of communication remain open to engage with the US and our negotiators are ready pending invitation from the US.”

Although the US has imposed reciprocal tariffs on several trade partners, South Africa has been hit particularly hard.

President Donald Trump’s unilateral tariff hike singles out South Africa with a 30% increase, significantly higher than the 15% levied on countries such as Nigeria, Ghana, Lesotho, and Zimbabwe.

Responding to the move, Ramaphosa said that “South Africa and US trade relations are complementary in nature and South African exports do not pose a threat to US industry.”

“Importantly, South Africa’s exports to the US contain inputs from the African Continent and contribute to intra-African trade.”

In response to the looming tariffs, Ramaphosa confirmed that government is “finalising a package to support companies that are vulnerable to the reciprocal tariffs.”

He stressed the importance of protecting jobs and sustaining the country’s ability to produce high-quality exports.

As part of this effort, he said the government will step up its diversification strategy and collaborate with key industry players to secure access to alternative markets.

An Export Support Desk has already been established to provide exporters with regular updates and advisory services. Full details will be made available on the dtic’s website.

Ramaphosa added that all exceptions listed in the previous US Executive Order remain in force.

These cover products such as copper, pharmaceuticals, semiconductors, wood products, certain critical minerals, stainless steel scrap, and various energy-related goods.

A deal with the US is desperately needed, says BUSA

The US is South Africa’s second-largest trading partner by country. In 2024, total bilateral goods trade between the nations sat at R375 billion. 

Yet, the tariff decision underscores the deteriorating diplomatic relationship between Ramaphosa and Trump.

The US president has repeatedly accused South Africa of enacting “bad policies” and has even suspended aid over claims of alleged discrimination against the Afrikaner minority, allegations the South African government strongly denies.

In May, Ramaphosa held talks with Trump in an effort to mend ties, but the overture failed. Trump has since suggested he may skip the G20 summit in Johannesburg later this year.

For over two decades, the African Growth and Opportunity Act (Agoa) has provided duty-free access for South African products in sectors such as agriculture, mining, and auto manufacturing.

Trump’s announcement is widely viewed as a death knell for Agoa, even though the programme is only due for review in September.

Business Unity South Africa (BUSA), the country’s largest organised business group, described the tariff as a major threat to jobs and investment, warning of severe economic fallout if the government fails to negotiate a trade solution with Washington.

“The delay in finalising a framework agreement between our government and the US to mitigate the proposed 30% tariff is particularly troubling,” said BUSA CEO Khulekani Mathe.

According to BUSA, the automotive sector alone, which exported roughly R24.1 billion in vehicles and parts to the US, could see total tariffs rise to 55% when the existing 25% Section 232 steel duties are included.

This would render South African auto exports “uncompetitive,” placing 20,000 jobs at risk, said the business group.

The agriculture and agro-processing sectors, which export high-value produce like citrus and nuts under Agoa, could lose up to R4.2 billion in export revenue and up to 20,000 jobs, as these products become costlier and less attractive in the US market.

BUSA also flagged risks to the mining sector, where 5,000 jobs in diamond beneficiation and iron ore mining are under threat.

Despite this, BUSA believes that a trade deal remains within reach. “There is an opportunity for a successful agreement to be reached even after 1 August 2025,” Mathe said.

“We must continue to engage the US administration on existing access while building new capabilities, new markets, and a more resilient trade architecture.”

BUSA has called for seamless coordination between the South African government and affected sectors, urging a more consultative approach to formulating South Africa’s trade response.