As global trade dynamics shift and protectionist policies re-emerge, South Africa finds itself facing a significant economic hurdle: new 30% tariffs imposed by the United States on selected South African exports. These tariffs threaten not just the competitiveness of our goods abroad, but the stability of key domestic industries – particularly manufacturing and agriculture.
With the US standing as South Africa’s third-largest trading partner and a vital destination for many of our value-added exports, this policy change could ripple across the economy, impacting trade balances, jobs, and growth. Understanding who we trade with, what we export, and why the US market is so critical paints a clearer picture of the challenges, and the potential paths forward, in this unfolding trade dispute.
Where does South Africa Export its products to internationally?
What do we precisely export to the US?
Why trade with the US matters to South Africa
- The US is South Africa’s 3rd largest trading partner by volume of trade, accounting for nearly 7.5% of all our exports internationally.
- South Africa recorded a R37 billion surplus with the US for 2024 compared to the R253 billion deficit with other BRICS countries for the same period.
- This means that South Africa was a net exporter to the US in 2024 while being a net importer from other BRICS countries.
- Losing preferential access to the US market, coupled with diminished market share for South African-produced products, could shave as much as 0.2% off economic growth for 2025, coupled with loss in revenue and taxes for companies exporting to the US.
What are tariffs?
- Tariffs are taxes set by governments on imported goods, usually paid by importers or companies to protect local industries of importance to importing country.
- Exporters normally don’t pay these taxes, but price increases are shifted to the final consumer or user, making imported products more expensive and less competitive ie. Buy “local” instead of importing goods.
Are there any exempt products or goods in this list?
- Yes, there are some exemptions such as electricity, petroleum products and copper.
- Other exports to the US that still have significant exemptions include minerals, precious metals, including Ferrochrome used in the steel making industry.
- These exemptions however give some reprieve to the mining sector which exports to the US, which can be seen as some good news given the looming tariffs.
How will the 30% tariffs on South African exported goods affect the domestic economy?
- Some South African products exported to the US will face 30% tariffs on entering the US market, except those that are exempted due to US strategic importance. These 30% blanket tariffs will mean that South African-produced goods in the US will overnight increase by 30%, making them less competitive in the US market and leading to a loss of market share within one of our biggest trading partners.
- Affected sectors include the Manufacturing and Agricultural sectors with a combined total of nearly 40% of goods exported to the US.
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- For the manufacturing sector, it means that the South African automotive industry in the Eastern Cape and Gauteng will be severely impacted, with automotive exports to the US already declining since the tariff announcement in April 2025.
- For the agricultural sector, wines, nuts and other agricultural products exported to the US will also be affected in the coming months.
- Loss of market share due to uncompetitive pricing in the US because of the tariffs will lead to job losses in these sectors, especially in Gauteng and the Eastern Cape over the next few months if new markets are not found and/or a new trade deal with the US is not reached.
Why are the 30% tariffs on especially the automotive industry so challenging?
As global trade dynamics shift and protectionist policies re-emerge, South Africa finds itself facing a significant economic hurdle: new 30% tariffs imposed by the United States on selected South African exports. These tariffs threaten not just the competitiveness of our goods abroad, but the stability of key domestic industries – particularly manufacturing and agriculture.
With the US standing as South Africa’s third-largest trading partner and a vital destination for many of our value-added exports, this policy change could ripple across the economy, impacting trade balances, jobs, and growth. Understanding who we trade with, what we export, and why the US market is so critical paints a clearer picture of the challenges, and the potential paths forward, in this unfolding trade dispute.
Where does South Africa Export its products to internationally?
What do we precisely export to the US?
Why trade with the US matters to South Africa
- The US is South Africa’s 3rd largest trading partner by volume of trade, accounting for nearly 7.5% of all our exports internationally.
- South Africa recorded a R37 billion surplus with the US for 2024 compared to the R253 billion deficit with other BRICS countries for the same period.
- This means that South Africa was a net exporter to the US in 2024 while being a net importer from other BRICS countries.
- Losing preferential access to the US market, coupled with diminished market share for South African-produced products, could shave as much as 0.2% off economic growth for 2025, coupled with loss in revenue and taxes for companies exporting to the US.
What are tariffs?
- Tariffs are taxes set by governments on imported goods, usually paid by importers or companies to protect local industries of importance to importing country.
- Exporters normally don’t pay these taxes, but price increases are shifted to the final consumer or user, making imported products more expensive and less competitive ie. Buy “local” instead of importing goods.
Are there any exempt products or goods in this list?
- Yes, there are some exemptions such as electricity, petroleum products and copper.
- Other exports to the US that still have significant exemptions include minerals, precious metals, including Ferrochrome used in the steel making industry.
- These exemptions however give some reprieve to the mining sector which exports to the US, which can be seen as some good news given the looming tariffs.
How will the 30% tariffs on South African exported goods affect the domestic economy?
- Some South African products exported to the US will face 30% tariffs on entering the US market, except those that are exempted due to US strategic importance. These 30% blanket tariffs will mean that South African-produced goods in the US will overnight increase by 30%, making them less competitive in the US market and leading to a loss of market share within one of our biggest trading partners.
- Affected sectors include the Manufacturing and Agricultural sectors with a combined total of nearly 40% of goods exported to the US.
-
- For the manufacturing sector, it means that the South African automotive industry in the Eastern Cape and Gauteng will be severely impacted, with automotive exports to the US already declining since the tariff announcement in April 2025.
- For the agricultural sector, wines, nuts and other agricultural products exported to the US will also be affected in the coming months.
- Loss of market share due to uncompetitive pricing in the US because of the tariffs will lead to job losses in these sectors, especially in Gauteng and the Eastern Cape over the next few months if new markets are not found and/or a new trade deal with the US is not reached.
Why are the 30% tariffs on especially the automotive industry so challenging?
