South Africa scrambles for new trade partners amid devastating US tariffs

President Cyril Ramaphosa has said that government is working to expand South African trade to new markets in attempts to reduce the country’s economic dependence on old markets and mitigate the impact of US tariffs. 

In his latest newsletter, Ramaphosa said that South Africa is now seeking a trade regime that does not render developing economies vulnerable to unilateral measures or protectionist pressures.

Ramaphosa has stressed that South Africa’s participation in global forums, such as last week’s Ninth Tokyo International Conference on African Development, is central to the country’s economic diplomacy.

The engagement comes as South Africa faces new trade headwinds, including the United States’ recent decision to impose a 30% tariff on local exports.

The Department of Trade, Industry and Competition described the move as “a significant policy shift that necessitates a clear and decisive response.”

Ramaphosa, however, made it clear that U.S. pressure would not alter South Africa’s foreign policy.

“Our outlook is not determined by pressure exerted by outside forces, but by principle,” he said, adding that the country’s diplomatic strategy is to build partnerships that “favour, advance, and safeguard South Africa’s national interests.”

Quoting the well-known maxim, “‘We face neither East nor West, we face forward,’” Ramaphosa emphasised that South Africa would continue to work with both the Global North and Global South.

“Our approach is neither partisan nor beholden, but strategic,” he said.

At the Tokyo forum, the President highlighted priority areas of cooperation with Japan, including renewable energy, automotive components, and hydrogen production.

Ramaphosa and Japan’s Prime Minister Shigeru Ishiba also discussed the expansion of Isuzu Motors on the African continent and plans to make the South African plant the manufacturing hub for Africa.

“Our approach to diplomacy will continue to be guided by respect for sovereignty, the pursuit of a just and equitable world order, and a firm belief that negotiation and dialogue have a key role to play in the mediation and resolution of conflict,” he said. 

Trying to soften the blow on South African industry

In May, Ramaphosa visited Washington in an effort to negotiate a trade deal, offering to buy US liquefied natural gas and invest $3.3 billion in a “framework deal” proposed by Pretoria.

Despite last-minute improvements to the offer, the negotiations failed, and on 8 August 2025, a 30% US tariff on South African exports took effect.

Officials warn the tariff could cost tens of thousands of jobs, especially in agriculture and auto manufacturing.

South Africa exported $14.82 billion to the US in 2024, while importing $6.98 billion, indicating a substantial trade surplus for South Africa in goods trade. 

The US claimed some trading partners had made sufficient commitments, while others, including South Africa, had not adequately addressed trade imbalances or aligned on economic and national-security matters.

Pretoria also rejected claims that its Black Economic Empowerment policies contributed to the failed negotiations.

The Department of Trade, Industry, and Competition listed the diversification of exports to alternative markets as one of the five key measures the country is implementing in response. 

This is in addition to continued efforts to secure a deal with the US to reduce the tariffs, providing vulnerable companies and workers with an economic response package, trade defense against import surge and dumping, and demand side interventions. 

South Africa submitted a revised offer to the US, responding to issues the US administration has raised. 

This included granting the US market access to export poultry, pork and blueberries to South Africa. 

The department added that diversification is a strategic imperative to ensure South Africa’s resilience against such economic shocks. “This is not a plan B; it is a plan A for long-term resilience and competitiveness.”

Japan was identified by the DTIC as a potential market with growing demand and a positive reception to South African products. This is alongside Vietnam, Thailand, the Middle East, and India. 

Of the tariffs being introduced by the Trump administration, South Africa faces the highest rate in sub-Saharan Africa. 

Previously, South Africa’s automobile, farming, and textile sectors enjoyed duty-free access to the US market. Trump introduced the tariffs citing the protection of American businesses from foreign competition and boost domestic manufacturing and job creation.