South Africa has been hit with a 30% tariff on exports to the United States as part of US President Donald Trump’s sweeping new “reciprocal tariffs” regime announced on Wednesday, 2 April 2025. The steep tariffs, which the South African Presidency has described as a “barrier to trade and shared prosperity,” come at a critical time for the African Growth and Opportunity Act (AGOA), which is set to expire in September.
Trump announced a global 10% tariff on all imports to the US, with additional “reciprocal tariffs” for dozens of countries that he claims “treat the US badly.” South Africa faces a 30% tariff, which Trump claims is a “discounted” rate based on his calculation that South Africa imposes 60% in tariffs and other trade barriers on the US.
“They have got some bad things going on in South Africa. You know, we are paying them billions of dollars, and we cut the funding because a lot of bad things are happening in South Africa,” Trump said during his announcement from the White House Rose Garden.
The 10% universal tariff will go into effect on 5 April, while the country-specific reciprocal tariffs will begin on 9 April.
Who Is Affected?
South Africa is the continent’s biggest exporter to the US, with bilateral trade worth $20.5 billion in 2024. According to the US Trade Representative, South Africa exported goods worth $14.7 billion to the US in 2024, while importing $5.8 billion, resulting in a trade deficit of $8.8 billion for the US.2
The White House has published a list of South African products that will be exempt from the 30% tariff, including platinum-group metals, base metals (copper, zinc and manganese), precious metals such as gold, fertilisers and pesticides, various wood products including pulp and paper, as well as nickel products. These exemptions are crucial for industries like the US automotive sector, which relies on South African platinum for component parts such as catalytic converters.
However, the 30% tariffs will still affect many South African exports, including the automotive sector, which exports over $2 billion in vehicles and auto parts to the US annually. Other major exports likely to be affected include iron and steel, machinery, aluminium products, and citrus.
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Why Has Trump Imposed These Tariffs?
Trump claims the tariffs are designed to balance trade and put “America first.” He has accused countries worldwide of “cheating” by running massive surpluses while imposing steep tariffs and “hidden” tariffs through VAT and other measures.
The US president has also been openly hostile toward South Africa in recent months, attacking the country’s land reform policies and accusing the government of discriminating against white farmers. In February, Trump signed an executive order stating that the US “cannot support the government of South Africa’s commission of rights violations in its country.”
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How Has South Africa Responded?
The South African Presidency issued a statement expressing concern about the decision: “Whilst South Africa remains committed to a mutually beneficial trade relationship with the United States, unilaterally imposed and punitive tariffs are a concern and serve as a barrier to trade and shared prosperity.”
The statement emphasised “the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US, as an essential step to secure long-term trade certainty.”
Trade Minister Parks Tau has indicated that South Africa should not take a “retaliatory approach” but should continue to engage with Washington while diversifying its trade partnerships.
Political economist Professor Patrick Bond suggests that the 30% tariffs could have some unexpected benefits for South Africa.
“If the 30 per cent tariffs lower US demand for South African steel and aluminium, I would say there may be some positive benefits,” Bond said in an interview with Salaamedia. “Hopefully the electricity that goes into BHP Billiton will decline and it will be redistributed to labour-intensive industries and small businesses and the households who need it instead of having loadshedding or load reduction.”
Bond also suggested that the tariffs might force necessary changes in South Africa’s automotive industry: “South Africa could be a great exporter of electric vehicles and now this may be one of those punches to the gut that forces the automakers to change their policies.”
He added that there could be long-term benefits to reducing dependence on the US market: “There may be some benefits from moving away from a very volatile partner. The US simply cannot be trusted on anything anymore.”
The tariffs come as AGOA, which grants qualifying African nations duty-free access to the US market, is set to expire in September. Trade experts believe the new tariffs signal that the trade accord is unlikely to be renewed.
The tariffs also risk pushing African nations closer to China, which is already the continent’s dominant trading partner. “China is likely to play up its commitment to more predictable rules-based economic engagement, which could push countries even closer to its orbit,” said David Omojomolo, Africa economist at Capital Economics.
As South Africa navigates these challenging waters, the 30% tariffs represent not just an economic hurdle but a diplomatic test that could reshape the country’s trade relationships for years to come.
Image: via Newsweek.com
