Keypoints:
- 30% US tariffs threaten South African jobs
- Pretoria pivots to Africa and Asia markets
- Diplomatic fallout fuels deeper trade shift
SOUTH Africa is deepening trade ties across Africa and Asia as tensions with the United States escalate over a pending 30 percent tariff that could cost tens of thousands of jobs, President Cyril Ramaphosa has warned.
Writing in his weekly newsletter on Monday, Ramaphosa said protecting South Africa’s export industries was the government’s top priority, as talks with Washington continue in an effort to avert the most punitive US trade action in years.
‘We will continue to engage the US in an attempt to preserve market access for our products. At the same time, we must accelerate the diversification of our export markets, particularly by deepening intra-African trade,’ he said.
The planned tariffs—set to take effect this week—target key sectors such as agriculture, automotive and textiles, although around 35 percent of exports will remain exempt, including copper, pharmaceuticals, semiconductors, lumber products and certain critical minerals.
The United States is South Africa’s second-largest individual trading partner, behind China, making the new tariffs a serious threat to the economy.
Jobs and growth under threat
The South African Reserve Bank has projected that the US duties could reduce GDP by 0.2 percent, while officials warn the impact on employment could be severe. Trade department director general Simphiwe Hamilton said on Monday that around 30,000 jobs are at risk. The central bank, however, has suggested the figure could be as high as 100,000.
South Africa’s jobless rate remains stubbornly high at over 30 percent.
Foreign Minister Ronald Lamola criticised the planned tariffs as unjustified and disproportionate, noting that South African exports make up just 0.25 percent of total US imports and pose no threat to American industry or national security.
‘These tariffs are inscrutable,’ Lamola said. ‘South Africa poses no trade threat to the US economy. In fact, many of our exports are complementary and support US industry.’
He pointed to the example of agricultural produce, which is exported on a counter-seasonal basis to help fill gaps in US supply, rather than replace it.
Pretoria offers trade concessions
In a bid to de-escalate the situation, South Africa has offered to boost imports of US liquefied natural gas and certain agricultural products. It is also open to investing in US mining and metals-recycling industries, officials confirmed.
Despite these offers, Pretoria remains focused on securing long-term alternatives should talks collapse. Ramaphosa announced the creation of a new export support desk to assist South African businesses in accessing markets across Africa, Asia, and the Middle East.
He also recommitted his administration to the African Continental Free Trade Area (AfCFTA), which he said will ‘strengthen our resilience and reduce dependence on any single market.’
Diplomatic chill deepens
The trade dispute comes amid broader diplomatic strain between Washington and Pretoria. Earlier this year, South Africa filed a case at the International Court of Justice accusing Israel of genocide in Gaza, drawing a sharp rebuke from the United States.
In March, tensions escalated further when Washington expelled South Africa’s ambassador after he criticised President Donald Trump’s ‘Make America Great Again’ movement.
Ramaphosa’s foreign policy approach has been criticised at home, with some coalition partners accusing the government of alienating critical allies and failing to secure vital trade protections.
Yet Pretoria appears to be turning crisis into opportunity, using the fallout to double down on regional trade integration and South-South cooperation.
‘This is a critical moment to reimagine our trade future,’ said a senior official in the Department of Trade, Industry and Competition. ‘We must build a diversified and resilient export base—rooted in the continent and open to the East.’
