The South African government has announced a sweeping economic strategy to counter the effects of a new 30% tariff imposed unilaterally by the United States on selected imports from Pretoria, set to take effect on August 8.
In a joint press briefing on Monday, Foreign Affairs Minister Ronald Lamola and Trade Minister Parks Tau labelled the decision “incomprehensible,” pointing out South Africa’s minimal share of total US imports—just 0.25%—and the complementary nature of its counter-seasonal agricultural exports.
“Furthermore, South Africa poses no commercial threat to the US economy or its national security,” the ministers declared.
They also criticised the basis for the US trade deficit calculations, arguing that the figures overlook the substantial American surplus in services and the mutually beneficial nature of trade and investment flows between the two nations.
Economists warn that the tariff move, part of a wider recalibration of US trade policy affecting multiple global partners, could dent South Africa’s GDP growth by 0.2%. While some key sectors—such as copper, pharmaceuticals, and semiconductors—remain exempt, concerns loom over job security and trade volatility.
In response, South Africa will launch an export support desk to help affected companies diversify markets, navigate compliance standards, and establish diplomatic links. Additional support will come through a Localization Support Fund and an Export and Competitiveness Support Program, offering financial tools like cash flow facilities and equipment financing.
The Ministry of Labour is also mobilising to adjust unemployment insurance schemes to shield the most vulnerable sectors.
In a bid to maintain global competitiveness, the Ministry of Commerce has introduced a sector-specific exemption for exporters, permitting cooperative measures between companies that would otherwise breach antitrust laws. A draft framework is expected by the end of this week.
South Africa reiterated its preference for diplomatic engagement, referencing a comprehensive trade framework submitted to Washington in May 2025, aimed at resolving imbalances and fostering industrial development.
Officials further underscored that South African exports serve as vital inputs for American industries, with over 600 US firms operating within South Africa, generating employment across both economies.
The government also pointed to recent diversification efforts, including a 90 billion rand ($5 billion) investment pact with the European Union under the Clean Trade and Investment Partnership, alongside expanded market access for South African agriculture in China and Thailand.
About The Author
