South Africa faces US tariffs
(MENAFN) South African President Cyril Ramaphosa acknowledged that the country is struggling with the recent 30% tariff imposed by the United States on South African imports but emphasized that many nations are encountering growing difficulties in global trade.
In his weekly newsletter, Ramaphosa called the new US tariffs a clear signal of the urgent need to adjust to increasingly volatile international trade conditions.
He noted that the US is South Africa’s second-largest trading partner, and the tariffs will significantly impact industries dependent on exports to the US, affecting both workers and government revenue. Key sectors like agriculture, automotive, and textiles, which have historically enjoyed duty-free access under the African Growth and Opportunity Act (AGOA), will face disruptions.
Ramaphosa highlighted that South Africa’s trade with the US has generally been complementary, as its exports do not directly compete with US producers but instead supply inputs that support American industries.
He also pointed out that South Africa is the largest African investor in the US, with 22 companies involved in sectors such as mining, chemicals, pharmaceuticals, and food production.
The Trump administration announced the 30% tariff, set to take effect on August 7. South Africa is the only sub-Saharan African country targeted with such a steep tariff, signaling worsening relations between Pretoria and Washington. Other African nations, including Lesotho and Zimbabwe, will face a 15% tariff starting the same day.
The tariff move is a major setback for South Africa’s economy, particularly after recent efforts to deepen trade ties with the US through agreements on liquefied natural gas, poultry import regulations, and US-based investments.
Ramaphosa defended South African imports, stressing they ultimately benefit US consumers by providing more choices and lowering prices.
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