South Africa Expands Trade Efforts After US Imposes 30% Tariff

South Africa is actively seeking new trade routes amid the imposition of a 30% tariff by the US on its imports, a move that threatens to undermine key industries including agriculture and automotive manufacturing. President Cyril Ramaphosa has announced intensified trade missions to explore opportunities beyond the US, focusing on new markets across Africa and globally. The National Exporter Development Programme is also set to be expanded to support local companies in capturing these export opportunities [1].

The Trump administration justified the tariffs by citing governance concerns, including allegations of rights violations and a controversial expropriation law passed in January. The law allows the state to reclaim land in certain situations without compensating the owners, a policy that has drawn sharp criticism from the US. In response, the South African government reportedly proposed a framework deal to address these issues but emphasized its commitment to finding alternative trade partners if a resolution is not reached [1].

The economic impact is already being felt. Jendamark Automation, a machinery and software firm in Gqeberha, has reportedly lost deals worth 750 million rand ($42 million) as a result of the tariffs. South Africa’s main agricultural lobby has also raised concerns that the timing of the tariffs—coinciding with the citrus picking season—could deal a severe blow to the 35 billion-rand citrus industry [1].

In response, the government is developing a relief package to support businesses affected by the US measures. Ramaphosa described the package as a necessary step in what may become a prolonged trade dispute with the US. However, economist Wandile Sihlobo warned that securing new markets will require time and resources, noting that diversification should be seen as part of a broader export growth strategy rather than a direct replacement for the US market [1].

The US remains South Africa’s second-largest export partner after China, with bilateral trade reaching $8.8 billion in the past year. The trade tensions have come amid a broader deterioration in relations, including the US suspension of aid and Trump’s allegations that the South African government is complicit in the persecution of white farmers. These tensions have further escalated with Trump’s recent public remarks accusing the South African government of “genocide” [1].

The Trump administration’s confrontational approach has also extended to the BRICS bloc, of which South Africa is a key member. The trade dispute highlights the growing divide between the US and countries seeking to expand economic partnerships beyond Western-led trade frameworks [1].

Source: [1] South Africa looking at alternative trade routes as US insists on 30% exports tariff (https://coinmarketcap.com/community/articles/6890bcb1bcd39c77ce70bc52/)