Pretoria — The South African government announced on Friday that it is drafting a comprehensive support package for exporters impacted by U.S. President Donald Trump’s new 30% tariff, warning of severe job losses across the automotive and agricultural sectors.
In response to the sweeping trade restrictions, Trade Minister Parks Tau launched an "Export Support Desk" aimed at helping affected firms identify alternative markets and navigate the unfolding trade disruption. Calling it “a trying moment for South Africa,” Tau stressed that the government remains committed to shielding vulnerable sectors from the tariff shock.
President Cyril Ramaphosa, in an official statement, confirmed that communications remain open with Washington and expressed willingness to engage in trade negotiations.
“Our negotiators are ready, pending an invitation from the U.S.,” said Ramaphosa, adding that details of a relief package for exporters would be announced in the coming days.
Tariff Fallout and Political Frictions
President Trump’s executive order—issued Thursday—imposes elevated import duties on dozens of countries, including South Africa, and is scheduled to take effect within seven days. The move is part of his broader effort to reshape global trade in favour of U.S. interests.
South Africa had previously sought to reach a trade compromise with Washington, offering increased purchases of U.S. liquefied natural gas and investment in American industries in exchange for lower tariffs. However, Trump’s administration reportedly remained unresponsive, amid diplomatic strains over South Africa’s foreign policy stance and domestic affirmative action laws, which the U.S. president has criticized.
The U.S. is South Africa’s second-largest bilateral trading partner, after China, with major exports including automobiles, steel, citrus fruits, and wine. Mercedes-Benz South Africa, among the country’s leading auto exporters, is expected to be significantly impacted.
Industry Response: A Looming Crisis
The reaction from key industries has been swift and apprehensive. The South African Reserve Bank has projected that the tariffs could result in up to 100,000 job losses, particularly in agriculture and automotive manufacturing.
The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) estimates that $1.8 billion worth of steel-related exports are now at risk. CEO Tafadzwa Chibanguza noted that the new tariffs undermine preferential access granted under the African Growth and Opportunity Act (AGOA), a long-standing U.S. trade policy designed to boost African exports.
“Increasing tariffs to 30% effectively nullifies the U.S. market for us,” Chibanguza said, warning that countries such as Indonesia, which have secured more favourable trade terms with the U.S., could permanently displace South African exporters.
“Once those export relationships take root, even if South Africa recovers, reclaiming lost market share will be extremely difficult,” he added.
Meanwhile, the Democratic Alliance (DA), South Africa’s main opposition party, criticised the government’s Export Support Desk initiative as inadequate, branding it “laughable” in the face of such a far-reaching economic threat.
Agriculture Sector Under Pressure
The nation’s citrus farmers, heavily reliant on exports to the U.S., have also raised red flags. Industry representatives note that pivoting to markets in Asia or the Middle East is challenging due to differences in fruit preferences and regulatory standards, making the transition slow and costly.
As the August 1 tariff deadline approaches, Pretoria’s focus now shifts to damage control—both diplomatically and economically—as it seeks to preserve trade access, protect jobs, and reassure affected industries.
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