In a move that has shifted global attention back to tariffs, U.S. President Donald Trump recently proposed a flat tariff increase on all imports from several countries, including 30% on South African exports to the U.S.. These U.S. actions were reported on our blog earlier this week here and here. This blog post focuses on the South African government’s response.
A Rebuttal
President Cyril Ramaphosa has publicly opposed the tariffs, describing them as “unilateral” and based on a “contested interpretation of trade data.” South Africa’s position is that the U.S. administration’s justification – namely, a supposed 60% average tariff on U.S. goods entering South Africa – is contradicted by South African trade statistics suggesting that the average tariff on imported goods into South Africa is 7.6% and that approximately 77% of U.S. goods enter duty-free under the Most Favoured Nation tariff regime.
South Africa has not responded with retaliatory tariffs, yet. South Africa submitted a “Framework Deal” to the U.S. on 20 May 2025, addressing key concerns such as trade surplus, reciprocity, and alleged unfair practices. The U.S. has indicated that the 30% tariff could be revised depending on the outcome of negotiations with South Africa. President Trump stated that the 1 August 2025 deadline for implementation is “firm but not 100% firm,” suggesting some flexibility depending on how negotiations proceed.
Deal-Making in Progress
At its core, the current standoff is a form of deal-making. South Africa is currently awaiting a formal template from the U.S. outlining how it intends to engage sub-Saharan African countries on trade. This was first mentioned during a side-line meeting at the U.S.-Africa Summit in Luanda on 23 June 2025. The outcome of these negotiations will likely determine whether South Africa can strike a deal or face the consequences of failing to do so. In addition, the African Growth and Opportunity Act (commonly referred to by its acronym “AGOA”), a U.S. law that governs American economic relations with sub-Saharan African nations, will be up for renewal in September 2025, and the question remains how this will factor into trade negotiations.
What’s at Stake: Key Export Sectors
The U.S. is a major trading partner and several of South Africa’s top export sectors will be affected by the proposed tariffs. These include:
- Motor vehicles and automotive components
- Precious stones and metals (notably gold and platinum)
- Fresh fruit (especially citrus and grapes)
- Iron and steel products
Strategic Diversification: A Path Forward
South Africa has been engaging in efforts to diversify its trade relationships and supply chains. The U.S., once South Africa’s largest trading partner, has now slipped to third place – behind the European Union and China.
Looking ahead, South Africa may seek to explore new Free Trade Agreements (FTAs) and deepen ties with emerging and established markets alike. Countries such as China, India, Japan, Brazil, Saudi Arabia, and the United Kingdom offer significant opportunities for trade expansion.
