South Africa has announced emergency plans to shield its exporters from the impact of President Donald Trump’s new 30% tariff, warning that the sweeping trade move could devastate the country’s automotive and agriculture sectors.
On Friday, South Africa’s trade ministry said it had established an “Export Support Desk” to help companies grappling with the effects of the tariff and explore new market opportunities. Trade Minister Parks Tau described the current situation as “a trying moment for South Africa,” as businesses brace for widespread disruption.
The announcement comes one day after President Trump signed an executive order sharply raising import duties on dozens of countries, part of a broader effort to rebalance U.S. trade relations. The new tariffs are set to come into effect within a week.
In a statement on Friday, President Cyril Ramaphosa confirmed that “all channels of communication remain open to engage with the U.S., and our negotiators are ready pending invitation from the U.S.” He also revealed that government officials are finalising a relief package for the most vulnerable sectors, with further details expected shortly.
South Africa had sought to avert the tariff escalation by offering a trade proposal to Washington that included purchasing American liquefied natural gas and investing in U.S. industries. However, Trump’s administration did not respond to the overture, a silence attributed in part to political tensions over South Africa’s foreign policy and domestic affirmative action laws, both of which have drawn criticism from the White House.
The U.S. is South Africa’s second-largest trading partner after China, importing a wide range of South African goods, including automobiles, iron and steel, wine, and citrus. Major exporters like Mercedes-Benz South Africa stand to lose heavily under the new tariff regime.
Some critics say the government’s response has been underwhelming. The Democratic Alliance, South Africa’s main opposition party, branded the new Export Support Desk “laughable” given the gravity of the crisis.
Job Losses Loom Over Export Industry
Trade experts have warned that the new tariff could severely impact export-driven employment. South Africa’s central bank estimates that up to 100,000 jobs are at risk, particularly in agriculture and car manufacturing.
The automotive industry has already begun to feel the strain. Shipments of South African cars to the U.S. have been disrupted, with industry bodies describing the situation as a “socio-economic crisis in the making.”
The citrus sector, heavily reliant on U.S. demand, faces its challenges. Farmers warn that switching to Asian markets will be difficult due to differences in consumer taste and fruit standards.
Steel producers are also under threat. The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) noted that the U.S. imported $1.8 billion worth of steel and related products from South Africa last year, exports now at risk due to the tariff increase.
SEIFSA’s CEO, Tafadzwa Chibanguza, said that “if one considers that access to the U.S. was through AGOA, which was tariff-free, increasing tariffs to 30% effectively nullifies that market.” He expressed concern that countries like Indonesia, which have negotiated more favourable terms with the U.S., will quickly capture South Africa’s market share.
“Once those export trends and relationships cement, even if you fix things in South Africa, you are unlikely then to take market share from those countries,” Chibanguza explained.
As Pretoria works on damage control and alternative strategies, the clock is ticking. With tariffs due to take effect in a matter of days, thousands of jobs and billions in export revenue hang in the balance.
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