- The sweeping 31% tariff measures will affect several industries across South Africa, including automotive industry, agriculture, processed food and beverage, chemical, and metals.
- To counter the blow Pretoria plans to negotiate favourable agreements, diversify and expand trade relations while enhancing regional trade ties.
- The country is also planning to double down on value-added production, while stimulating domestic growth.
Policymakers in South Africa have outlined a number of measures to stem the possibility of economic fallout following the imposition of 31 percent tariff implemented by the US Administration effective from 9 April, 2025.
In a statement on Saturday, South Africa said it will continue to navigate the challenges and opportunities its new measures present with resilience and innovation. The reciprocal tariffs announced by President Donald Trump effectively nullify the trade preferences that Sub-Saharan Africa countries enjoy under the Africa Growth and Opportunity Act (AGOA).
Notably, the sweeping tariff measures will affect several industries across South Africa, including automotive industry, agriculture, processed food and beverage, chemical, metals, and other segments of manufacturing, with implications for millions of jobs and industrial growth.
“Guided by its national interests and aligned with its broader trade and industrial policy, South Africa is committed to ensuring economic growth, industrial development, and the well-being of its citizens,” a statement from South Africa’s Department of International Relations and Cooperation stated.
To counter the looming sting in its economy, South Africa has unveiled up to six measures which it terms as “South Africa’s strategic adaptation to US tariffs”, all fashioned to help advance national interests through policy and strategy in the years ahead. Some of the measures include a plan to negotiate favourable agreements, diversify and expand trade relations and initiatives to enhance regional trade collaboration.
Africa’s most advanced economy is also planning to double down on value-added production, while unleashing a spirited push to stimulate domestic growth. Additionally, President Cyril Ramaphosa’s government has committed to continue forge global alliances to further drive growth and investments.
How South Africa plans to re-orient international trade under Trump tariffs
The imposition of stinging trade tariffs by U.S. President Donald Trump sent shockwaves through South Africa’s export-driven industries, threatening key sectors that rely on preferential access to the American market. In response, South African authorities have crafted a bold, multi-pronged strategy aimed at cushioning the economy, safeguarding jobs, and ensuring long-term resilience. These measures are:–
Negotiating favourable agreements
The sudden withdrawal of preferential trade arrangements with the U.S. has placed South African exporters at a disadvantage, particularly in sectors like automotive manufacturing, agriculture, and minerals. Recognizing the urgency, trade negotiators are engaging Washington to secure exemptions and favourable quota agreements. The goal is not just damage control but strategic repositioning—ensuring that key industries retain access while exploring sector-specific cooperation.
Where outright exemptions are unattainable, South Africa says negotiators will push for phased adjustments, allowing businesses time to adapt. This aligns with the broader national interest of economic stability, ensuring that workers and industries dependent on U.S. trade are not abruptly destabilized.
Diversifying trade relations
Over-reliance on any single market is a vulnerability, and the U.S. tariffs have underscored this reality. South Africa is now accelerating efforts to diversify its export destinations, targeting high-growth regions such as Asia, the Middle East, and Latin America. Africa itself remains a priority, with untapped potential in regional trade partnerships.
As the current G20 president, South Africa is also championing the issue of supply chain diversification—a challenge facing all open economies. By expanding into new markets, the country aims to mitigate risks while supporting its industrial strategy.
Leveraging the AfCFTA
The African Continental Free Trade Area (AfCFTA) presents untapped opportunity for South Africa to deepen economic ties across the continent. By reducing trade barriers among African nations, the AfCFTA allows South African manufacturers and farmers to access a market of 1.3 billion people.
South Africa’s strategy involves positioning itself as a manufacturing and logistics hub for the continent, supplying value-added goods rather than just raw materials. This not only cushions the blow from U.S. tariffs but also aligns with the vision of a more integrated, self-reliant Africa.
Prioritizing value-added production
Historically, South Africa has exported raw materials—platinum, gold, agricultural produce—only to import finished goods at higher prices. The new tariffs provide a compelling reason to change this dynamic. Industries are now being incentivized to process raw materials locally, transforming them into higher-value products before export.
For example, instead of merely exporting raw chrome ore, South Africa can produce stainless steel. Instead of shipping uncut diamonds, it can expand its gem-cutting and jewelry manufacturing sectors. This shift not only reduces exposure to tariffs but also creates skilled jobs, stimulates innovation, and boosts profitability.
Stimulating domestic growth
The South African government recognizes that external shocks demand internal fortification. Strategic investments will be directed toward modernizing industries hit hardest by the tariffs, particularly agriculture, mining, and automotive manufacturing. Infrastructure development—such as port upgrades and special economic zones—will enhance export competitiveness.
Additionally, policies will encourage local procurement, reducing reliance on imported inputs. By fostering a more self-sufficient industrial base, South Africa can insulate itself from future trade disruptions.
Building global alliances
Trade wars are rarely fought—or won—alone. South Africa is actively strengthening partnerships with other nations affected by U.S. protectionism, including Brazil, India, and the European Union. By presenting a united front in international forums like the WTO, these nations can push back against unilateral tariffs while advocating for fairer trade rules.
Moreover, South Africa’s diplomatic engagements extend beyond trade, encompassing technology transfers, investment treaties, and joint research initiatives. The goal is to create a network of economic allies that can collectively withstand global trade volatilities.
Pretoria demands clarity on 31 per cent tariff implementation
Notably, while South Africa’s average tariff is 7.6 per cent, the country has sought clarification on the basis upon which Washington intends to impose a 31 per cent duty on its exports.
However, it is important to note that products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products have been exempted from the reciprocal tariffs by the Trump administration. Some of these materials are already key parts of the United States of America’s sourcing requirements.
According to the United States Geological Survey, 97 per cent of their chrome ore requirements come from South Africa, 6 per cent of fluorspar import requirements and 24 per cent of the United States manganese requirements. These reciprocal tariffs will not apply to products already facing Section 232 tariffs of 25 per cent such as steel, aluminium, automobiles and auto parts.
Last year, the US represented 7.45 per cent of South Africa’s total exports while Pretoria accounted for only 0.4 per cent of US total imports. As such, Africa’s most advanced economy does not constitute a threat to US and where there is a trade imbalance in favour of South Africa, it is mainly on agriculture products which are counter-cyclical and on minerals which are inputs in US industries, policymakers noted.
Read also: Trump tariffs sting set to ruffle several economies in Africa
