NATIONAL NEWS - US President Donald Trump unveiled a sweeping new tariff policy yesterday, 2 April, sending shockwaves through South Africa’s economy as the country braces for significant trade disruptions. Announced in Washington DC, the “America First” initiative imposes a baseline 10% tariff on all US imports starting 5 April, with additional “reciprocal tariffs” targeting specific nations, including South Africa, set to take effect on 9 April.
The move threatens to upend a key export market for South African goods and could reshape the nation’s economic landscape.
In a Rose Garden address, Trump framed the tariffs as a corrective measure against global trade imbalances, declaring, “Countries have taken advantage of America for too long. We’re putting our workers first.”
South Africa is one of 60 countries that Trump slammed with higher tariffs and face a 30% tariff on all exports to the US. The White House justified the extra levy by pointing to South Africa’s $1.3 billion trade surplus with the US in 2024 and what it calls “unfair” trade practices, including subsidies in the agricultural and automotive sectors.
Trump said South Africa has been charging 60% tariffs on US goods.
Trading Economics stated that according to the United Nations Comtrade database on international trade, South Africa’s exports to the US was US$8.21 billion during 2024.
Almost a quarter of South African exports used to enjoy duty-free access under the African Growth and Opportunity Act (AGOA). Exports were heavily concentrated in minerals, precious metals, and vehicles.
South Africa’s preferential trade status under AGOA, hangs in the balance. While the program remains intact for now, Trump hinted at a broader review, stating, “We’re looking at all these so-called free trade deals.” Losing AGOA benefits could compound the tariff blow, a prospect that has reignited calls for South Africa to diversify its export markets toward Asia and the Middle East.
The tariffs come at a precarious time for South Africa, where economic growth has stagnated at 0,6% for 2024 and unemployment hovers at 32%.
According to Business Tech, the rand weakened by almost 2,3% against the dollar within hours of Trump’s announcement.
Globally, the tariffs have sparked a backlash, with China, the EU and Canada promising counter measures.
(This report was compiled with the help of AI.)
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